Summary of the Current Suite of Producer and International Trade Price Indexes
Details of the key Australian Producer and International Trade Price Indexes published by the ABS are outlined by industry below.
For each price index group, information relating to the scope, classification, weights, and practical difficulties and issues for each index.
Further information on historical development and changes for each index can be found in Chapter 5.
| Type of index | Output price indexes (transaction flow). Note: a more detailed description of the Final PPIs can be found in Chapter 5 Historical background. |
| Purpose | The Final Demand price index is a broad economy-wide supply-side price index that is derived from the former Stage of Product Framework of the Producer Price Indexes. It provides a headline summary analytical series for the Producer Price Indexes. |
| Major uses | A general indicator of price change across the Australian economy at the final stage of demand. |
| Pricing basis | basic prices |
| Classification system | Products are classified according to their industry of origin (or competing industry of origin for imports) according to Australian and New Zealand Standard Industrial Classification (ANZSIC) 2006 Imported products are classified to their equivalent Australian industry of origin |
| Weight reference period | 2018-19 |
| Link period | December quarter 2021 |
| Index reference period | 2011-12=100.0 |
| Type of index | Input price index |
| Purpose | This price index measures changes in the prices paid for input to the coal mining industry. |
| Major uses | The major use of this price index is for contract adjustment. |
| Pricing basis | Purchasers’ prices, in this case actual transaction prices (including any discounts etc.) paid by coal mines to suppliers for inputs delivered to mine sites). The prices used include all relevant charges and freight costs, net of any discounts and rebates. The Goods and Services Tax (GST) is excluded from the prices because, in the main, it is deductible on business-to-business transactions. Prices include delivery to a mine site, or to the primary storage site for a group of mines. |
| Classification system | The Input to the Coal mining industry index is classified in accordance with the Australian and New Zealand Standard Industrial Classification (ANZSIC) 2006. |
| Weight reference period | 2018-19 |
| Link period | March quarter 2023 |
| Index reference period | 2011-12 = 100.0 |
| Type of index | Output price index (gross division) |
| Purpose | Measures changes in the prices in output of the manufacturing industry as a whole, and by the fifteen subdivisions within the manufacturing division. |
| Major uses | Volume measures in the Australian National Accounts; general economic analysis; contract adjustment. The components of these indexes are also inputs to the Final Demand indexes. |
| Pricing basis | Basic prices, the manufacturers' selling prices, exclusive of excise taxes and GST. As far as possible, actual transaction prices are collected from businesses, representative of discounts offered or other differences from list prices. The index aims to measure prices ex-factory, although costs such as transport and handling are included if they are an indistinguishable part of the price. |
| Classification system | Products are classified according to the Input-Output Product Classification (IOPC). Published indexes are classified according to Australian and New Zealand Standard Industrial Classification (ANZSIC) 2006 |
| Composition and weighting | Indexes are published for total manufacturing (ANZSIC 2006 Division C), and for selected industry groupings based on ANZSIC 2006 down to four digit levels. The total division index is compiled on a gross division basis, i.e. prices relate to all products produced by manufacturers, including those sold overseas and used by the manufacturers. Upper level weights are derived from Input-Output tables. |
| Weight reference period | 2018-19 |
| Link period | December quarter 2021 |
| Index reference period | 2011-12 = 100.0 |
| Type of index | Input price index |
| Purpose | Measures changes in the prices of goods and services used by the manufacturing industry as a whole, and by the fifteen Australian and New Zealand Standard Industrial Classification (ANZSIC) 2006 subdivisions within the manufacturing division. Series are also provided for goods and services classified according to whether they are domestically produced or imported. |
| Major uses | Volume measures in the Australian National Accounts; general economic analysis; contract adjustment. |
| Pricing basis | Manufacturers' purchase prices, generally on a delivered into store basis. This equates to purchasers’ prices. As far as possible, actual prices are collected from manufacturers, with some exceptions when it is more efficient to collect from suppliers (for example, electricity prices). |
| Classification system | Products are classified according to IOPC. Published indexes describe industry of use and products classified by industry of origin, with industries classified in accordance with ANZSIC 2006. |
| Composition and weighting | Indexes are published for total manufacturing (ANZSIC 2006 Division C), and for selected industry groupings based on ANZSIC 2006 down to four digit levels. The total division index is compiled on a gross division basis, i.e. prices relate to all products purchased by manufacturers, including those purchased from overseas. Similarly, independent gross division indexes are also compiled at the subdivision and group (two and three digit) levels. Upper level weights are derived from Input-Output tables. |
| Weight reference period | 2018-19 |
| Link period | December quarter 2021 |
| Index reference period | 2011-12 = 100.0 |
| Type of index | Output price index (gross division) |
| Purpose | These price indexes measure changes in the prices received for the output of selected components of the construction industries. |
| Major uses | Volume measures in the Australian National Accounts, general economic analysis; contract adjustment. The components of these indexes are also inputs to the Final Demand indexes. |
| Pricing basis | Basic prices. The general approach is model pricing, where the components of a 'typical' construction project are repriced over time to provide measures of price change. The price indexes generally use prices for work undertaken in each capital city, as construction activity in the city is taken to represent the whole state or territory. For Queensland, however, Other Residential Building Construction and Non-Residential Building Construction also use prices obtained for North Queensland. |
| Classification system | The Output of the Construction Industries indexes are classified in accordance with Australian and New Zealand Standard Industrial Classification (ANZSIC) 2006. |
| Composition and weighting | ANZSIC 2006 class indexes at the State and Territory level are aggregated to the national level using proportions based on the value of work done by State and Territory and by type of construction as measured by the Building Approvals, Australia (cat. no. 8731.0). Class level weights for ANZSIC 06 Division 30 – Building construction are derived using Building Activity, Australia (cat. no. 8752.0). ANZSIC 06 Division 31 - Heavy and Civil Engineering Construction weights are based on Engineering Construction Activity, Australia (cat. no. 8762.0). |
| Weight reference period | 2020-22 |
| Link period | June quarter 2022 |
| Index reference period | 2011-12 = 100.0 |
| Type of index | Input price index |
| Purpose | Measures changes in the prices of selected inputs used in the construction of detached houses in each of the six state capital cities. |
| Major uses | Volume measures in the Australian National Accounts, general economic analysis; contract adjustment. |
| Pricing basis | Purchasers’ prices, in this case actual prices (including any discounts etc.) paid by building contractors or subcontractors for inputs delivered to the building sites. Deductible indirect taxes such as GST are excluded from prices. Prices are collected directly from manufacturers and wholesalers of building materials rather than from builders themselves, although such prices include delivery to building site where appropriate. |
| Classification system | The Input to the House Construction industry index is classified in accordance with Australian and New Zealand Standard Industrial Classification (ANZSIC) 2006, Class 3011 - House Construction. |
| Composition and weighting | The weighting pattern is calculated using bill of quantities data for 2019 -20 obtained from quantity surveyors. These quantities are price updated to June 2020 and then benchmarked to the Building Approvals, Australia (cat. no. 8731.0) total value work done for houses, by capital city. The weighting pattern for each capital city index reflects variations in prices for the cities as applied to an Australian average basket of house building inputs, with some allowance for city specific building practises, for example the differential use of steel and timber materials in Perth and Adelaide compared with the other capital cities. |
| Weight reference period | 2018-20 |
| Link period | June quarter 2020 |
| Index reference period | 2011-12=100.0 |
| Current services industries indexes |
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| Type of index | Output price index (gross division) |
| Purpose | Measure changes in the prices of services from selected divisions of Australian and New Zealand Standard Industrial Classification (ANZSIC) 2006. Note that some ANZSIC 2006 industries do not yet have established indexes, and thus are not represented within these tables. |
| Major uses | Volume measures in the Australian National Accounts; general economic analysis; contract adjustment. The components of these indexes are also inputs to the Final Demand index. |
| Pricing basis | Prices relate to amounts received by service providers, exclusive of any taxes on products and transport and trade margins. Where possible, actual prices, including the effects of any discounts offered are used in the indexes. Samples are regularly updated, and pricing methodologies are reviewed over time. The complexities involved in measuring services output prices mean that there is no single method of pricing. The most appropriate pricing strategy for any individual business provider is determined by way of industry consultation. |
| Classification system | Services are classified according to their ANZSIC 2006 industry of origin (4-digit class level). Indexes are available at the 4 digit ANZSIC 2006 level for most services, with aggregate indexes published for significant groups, subdivisions and divisions. |
| Composition and weighting | ANZSIC 2006 class indexes are aggregated to the relevant group, subdivision and division using weights derived from the Australian National Accounts: Input-Output Tables - Electronic Publication, 2018-19 Final (cat. no. 5209.0.55.001). |
| Weight reference period | 2018-19 |
| Link period | December quarter 2021 |
| Index reference period | 2011-12=100.0 |
| Type of index | Output price index |
| Purpose | The Export Price Index (EPI) measures changes in the prices received for exports of merchandise from Australia, including re-exports (goods which are imported into Australia then exported at a later date without physical transformation). The index numbers for each quarter relate to prices received for exports actually shipped during that quarter. |
| Major uses | To support the compilation of the Australian National Accounts and the Balance of Payments. More specifically to deflate merchandise trade values when calculating chain volume measures (CVM’s) and the calculation of CVM’s of exports on a Balance of Payments basis. Form part of the suite of producer price Indexes (PPI’s), used in contractual agreements and an indicator of our terms of trade. |
| Pricing basis | In general, prices are obtained from major exporters of the selected products included in the index. The prices used in the index are free on board (f.o.b.) at Australian ports of export, i.e: the price at which the products physically leave Australia. Prices used in the index are expressed in Australian currency. As a result, changes in the relative value of the Australian dollar against overseas currencies (in particular the major trading currencies such as the US dollar, Japanese yen, Pound sterling and Euro) can have a direct and significant impact on the price movements of the many products that are sold in currencies other than Australian dollars. Forward exchange cover is excluded from the prices used in the index. |
| Classification system | Products in the EPI are primarily classified according to the Australian Harmonised Export Commodity Classification (AHECC). Secondary Index numbers are produced and published according to other classifications; (i) The Standard International Trade Classification (SITC), Revision 4; (ii) ANZSIC (industry of origin basis); and (iii) the Balance of Payments Broad Economic Category Classification (BoPBEC). |
| Composition and weighting | The EPI is a Laspeyres type index that is annually chain linked. Products are selected based on their value of exports in the preceding two years. Their weights are derived from the same value of exports sourced from International Merchandise Trade. For example, data from the years 2019/20 and 2020/21 are combined to inform the selection of products and to derive their weights for the index in 2021/22. |
| Weight reference period | The weight reference period spans the preceding two years. For example, the 2021/22 financial year indexes have a weight reference period that spans the 2019/20 and 2020/21 financial years. |
| Link period | June quarter each year |
| Index reference period | 2011-12=100.0 |
| Type of index | Input price index |
| Purpose | The Import Price Index (IPI) measures changes in prices paid for imports of merchandise into Australia. The index numbers for each quarter relate to prices paid for imports landed in Australia during the quarter. |
| Major uses | To support the compilation of the Australian National Accounts and the Balance of Payments. More specifically to deflate merchandise trade values when calculating chain volume measures (CVM’s) and the calculation of CVM’s of imports on a Balance of Payments basis. Form part of the suite of producer price Indexes (PPI’s), used in contractual agreements and an indicator of our terms of trade. |
| Pricing basis | Prices of individual shipments are obtained from major importers of the selected items. Imports are priced on a f.o.b. country of origin basis. Freight and insurance charges involved in shipping the products from foreign countries to Australian ports are excluded from the prices used in the index, as are Australian import duties. All prices used in the IPI are expressed in Australian currency. |
| Classification system | As a result, changes in the relative value of the Australian dollar against overseas currencies (in particular the major trading currencies such as the US dollar, Japanese yen, Pound sterling and Euro) can have a direct and significant impact on the price movements of the many products that are sold in currencies other than Australian dollars. Forward exchange cover is excluded from the prices used in the index. |
| Composition and weighting | The Standard International Trade Classification (SITC), Revision 4 is the primary classification system for the IPI. |
| Weight reference period | As a result, there has been no material impact on the indexes, which remain comparable across the changes in classification. Secondary Index numbers are produced and published according to other classifications; (i) ANZSIC (industry of origin basis); (ii) the Balance of Payments Broad Economic Category Classification (BoPBEC); and (iii) the international Harmonised System (HS). |
The IPI is an annually reweighted chained Laspeyres index. Products are selected based on their value of exports in the preceding year. Their weights are derived from the same value of import sourced from International Merchandise Trade. For example, data from the year 2020/21 inform the selection of products and to derive their weights for the index in 2021/22. | |
The IPI is reweighted each year, linked through the June quarter, based on the average values of imported merchandise trade for the immediately preceding financial year. | |
| Link period | June quarter each year |
| Index reference period | 2011-12=100.0 |