INTERNATIONAL TRADE PRICE INDEXES
International trade price indexes measure the change in prices of goods either as they cross the customs frontier entering Australia (i.e. the imports) or leaving Australia bound for another country (i.e. exports).
As the prices used in these indexes are expressed in Australian currency, changes in the relative value of the Australian dollar against overseas currencies (in particular, the major trading currencies) can have a direct and significant impact on the price movements of the many commodities that are bought or sold in terms of prices expressed in overseas currencies. Forward exchange cover is excluded from the prices used in the indexes.
The prices collected and used in compiling the indexes relate to specified standards, grades, types, etc., of each commodity with the aim of incorporating in the index the price changes of representative goods of constant quality. Wherever possible, prices to or from specific major markets are used for each of the goods priced, in order to lessen the impact of price variations attributable solely to changes in market origins or destinations. In most cases, prices are combined using fixed weights between markets. Weights between markets are reviewed periodically and revised where necessary. (For more information on the international trade price indexes, see Producer and International Trade Price Indexes: Concepts, Sources and Methods, 2006 (6429.0).)
Import price index
The import price index measures changes in the prices of imports of merchandise landed in Australia, based on their 'free-on-board' (f.o.b.) prices in the country of origin. The index numbers for each quarter relate to prices of imports landed in Australia during the period. The commodities represented in the price index cover about 95% of merchandise imports.
The main uses of the import price index are as deflators for the production of chain volume estimates of imports, as a guide to future inflationary trends for macro-economic purposes and the indexation of business contracts.
Table 29.24 provides import price index numbers for major commodity groups based on the UN Standard International Trade Classification, Revision 3 (SITC Rev. 3), and the All groups index numbers, for the period 2002-03 to 2006-07.
29.24 IMPORT PRICE INDEX(a) |
|  |
| Commodity group (SITC section)(b) | 2002-03 | 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| |
| Food and live animals (0) | 125.1 | 116.9 | 120.0 | 125.9 | 123.8 | |
| Beverages and tobacco (1) | 139.9 | 134.1 | 128.2 | 132.5 | 122.3 | |
| Crude materials, inedible, except fuels (2) | 123.1 | 112.2 | 115.1 | 121.4 | 125.6 | |
| Mineral fuels, lubricants and related materials (3) | 174.9 | 156.2 | 202.3 | 288.0 | 280.2 | |
| Animal and vegetable oils, fats and waxes (4) | 141.0 | 134.9 | 142.2 | 160.9 | 167.0 | |
| Chemicals and related products n.e.s. (5) | 120.2 | 113.2 | 116.8 | 117.9 | 118.8 | |
| Manufactured goods classified chiefly by material (6) | 129.2 | 118.9 | 123.2 | 126.7 | 135.1 | |
| Machinery and transport equipment (7) | 118.7 | 103.3 | 98.3 | 95.4 | 92.4 | |
| Miscellaneous manufactured articles (8) | 132.1 | 114.4 | 111.8 | 112.3 | 109.3 | |
| Commodities and transactions n.e.s. (9) | 115.4 | 110.2 | 113.3 | 142.3 | 163.7 | |
| All groups | 126.0 | 112.3 | 112.8 | 117.0 | 115.7 | |
| |
| (a) Reference base year is 1989-90 = 100.0. |
| (b) Classified according to the UN Standard International Trade Classification, Revision 3 (SITC Rev. 3). |
| Source: International Trade Price Indexes, Australia (6457.0). |
Export price index
The export price index measures changes in the prices of all exports of merchandise from Australia, including re-exports (goods which are imported into Australia then exported without alteration). The index numbers for each quarter relate to the prices of exports actually shipped during that quarter. The commodities represented in the price index constitute approximately 95% of the total value of exports of merchandise from Australia.
In general, prices are obtained from the major exporters of the selected commodities included in the index. The prices used in the index are the prices at which the goods physically leave Australia, that is, the prices are f.o.b. at the main Australian ports of export.
Table 29.25 provides export price index numbers for major commodity groups based on the SITC Rev. 3, and the All groups index numbers, for the period 2002-03 to 2006-07.
29.25 EXPORT PRICE INDEX(a) |
| |
| Commodity group (SITC section)(b) | 2002-03 | 2003-04 | 2004-05 | 2005-06 | 2006-07 | |
| |
| Food and live animals (0) | 109.3 | 100.7 | 106.8 | 112.0 | 117.3 | |
| Beverages and tobacco (1) | 143.8 | 124.4 | 126.4 | 124.8 | 119.0 | |
| Crude materials, inedible, except fuels (2) | 97.0 | 90.0 | 103.1 | 121.3 | 147.3 | |
| Mineral fuels, lubricants and related materials (3) | 160.9 | 139.4 | 184.9 | 254.0 | 229.5 | |
| Chemicals and related products n.e.s. (5) | 100.4 | 97.2 | 108.3 | 118.8 | 125.5 | |
| Manufactured goods classified chiefly by material (6) | 102.1 | 100.6 | 121.1 | 139.8 | 187.0 | |
| Machinery and transport equipment (7) | 100.6 | 89.8 | 88.4 | 89.8 | 88.7 | |
| Miscellaneous manufactured articles (8) | 104.5 | 90.8 | 89.2 | 94.4 | 94.7 | |
| All groups | 111.7 | 102.5 | 116.4 | 136.0 | 146.8 | |
| |
| (a) Reference base year is 1989-90 = 100.0. |
| (b) Classified according to the UN Standard International Trade Classification, Revision 3 (SITC Rev. 3). |
| Source: International Trade Price Indexes, Australia (6457.0). |
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