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Introducing a new method to calculate index weights for the Producer Price Indices
During the rebasing of the PPI a review of certain methods was undertaken. This article details some of the improvements and the effect they have had.
The Producer Price Index (PPI) is currently being rebased which means updating the weighting structure from the base year 1995=100 to 2000=100.
As part of this process a review of certain methodological aspects have been undertaken. One such change was to look at the approach of index weights and adopt a more sophisticated method to estimate sales to the domestic market.
The sales are used to weight detailed PPI series to produce indices at an aggregate level. This article looks mainly at the change in method of calculating the sales to the domestic market and the effect this has had on results. A brief summary of other methodological changes introduced during the rebasing programme are also detailed. These include a review of how the input series is calculated and structured and the structure and weighting of the import series.
Published in web format: 12 August 2003 at 9:30 am
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