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1Namibia Producer Price Index | Q1 2020
Namibia Producer Price Index
NPPIFirst Quarter of 2020 Statistics Bulletin
Namibia Statistics Agency
Tel: +264 61 431 3200Fax: +264 61 431 3253Email: info@nsa.org.nawww.nsa.org.na
Namibia Statistics AgencyP.O. Box 2133, FGI House, Post Street Mall,
Namibia Producer Price Index
NPPIFirst Quarter of 2020 Statistics Bulletin
Mission Statement
“Leveraging on partnerships and innovative technologies, to produce and disseminate relevant, quality,timely statistics and spatial data that are fit-for-purpose in accordance with international standards and
best practice”
Vision Statement“Be a high performance institution in quality statistics delivery”
Core Values
Integrity
Excellent Performance
Accuracy
Team Work
Accountability
Transparency
AgencyAgency
“Leveraging on partnerships and innovative technologies, to produce and disseminate relevant, quality, timely statistics and spatial data that are �t-for-purpose in accordance with international standards and best practice”
Mission Statement
Vision Statement“Be a high performance institution in quality statistics delivery”
IntegrityExcellent PerformanceAccuracyTeam WorkAccountabilityTransparency
Core Values
Table of Contents
Preface ........................................................................................................................... 1
Summary Comments .......................................................................................................2
2394 Manufacture of cement, lime and plaster ..................................................................2
3510 Electric power generation, transmission and distribution ............................................2
3600 Water collection, treatment and supply .....................................................................3
Namibia Producer Price Index (NPPI): Technical notes .........................................................5
Classification and selection of establishment .....................................................................5
Determination of the weights and items ............................................................................5
Base period ..................................................................................................................... 5
Methodology .................................................................................................................. 5
1Namibia Producer Price Index | Q1 2020
Preface
The Namibia Statistics Agency hereby releases the first edition of Namibia Producer Price Indexes (NPPI) for three industries namely Manufacture of cement, lime and plaster, Electric power generation, transmission and distribution and Water collection, treatment and supply. This publication outlines the first quarter of 2020 results of Namibia’s producer price index for the period of January to March 2020.
The Producer Price Index (PPI) measure the rate of change in the prices of goods and services bought and sold by local producers. The PPI is designed to measure the average change in the price of goods and services either as they leave the place of production or as they enter the production process and it does not include imported products. Thus, the prices for monitoring changes in the PPI behavior are measured from the perspective of the producer. As a starting point, the NSA will produce and disseminate the three output NPPIs, to measure the rate of change in the prices of products sold as they leave the producer.
The PPI is part of a suite of price indices in economic statistics, Consumer Price Indices included, which are key and important price monitoring macroeconomic indicators. Price instability introduces uncertainty into economic analysis and decision making, so the main use of the PPI is to minimize such uncertainty.
The main uses of PPI inter-alia include: monitor short-term inflationary trends; deflator in the compilation of the National Accounts, and contract price adjustments and wage negotiations.
Prices for the compilation of the NPPI are collected on a monthly basis but the indices will be produced and published on a quarterly basis.
I wish to express my appreciation to all the data providers without whose contributions this publication would not have been possible.
Alex ShimuafeniStatistician-General & CEO
Namibia Producer Price Index | Q1 20202
KEY HIGHLIGHTS
1. Manufacture of cement, lime and plaster (ISIC 2394) The annual percentage change in PPI for Manufacturing of cement, lime and plaster was stagnant
during the first quarter of 2020 compared with a deflation of 9.2 percent recorded in the same quarter of 2019 (Table 2). The index remained unchanged at 98.1 basis point since the final quarter of 2018, making it the lowest index obtained between Q1: 2016 and Q1: 2020 with the highest Index of 109.5 recorded in quarter two of 2018 (Chart 1).
Chart 1: Quarterly indices of Manufacture of cement, lime and plaster (December 2015=100)
2. Electric power generation, transmission and distribution (ISIC 3510) The annual percentage change in PPI for Electric power generation, transmission and distribution
recorded a deflation of 23.9 percent in the first quarter of 2020 compared to 2.9 percent recorded in the first quarter of 2019 (Table 2). During the first quarter of 2020 the Index for Electric power generation, transmission and distribution decreased to 116.1 from 152.5 registered in the first quarter of 2019 (Chart 2).
Chart 2: Quarterly NPPI indices of Electric power generation, transmission and distribution (December 2015=100)
3Namibia Producer Price Index | Q1 2020
3. Water collection, treatment and supply (ISIC 3600)
The annual percentage change in PPI for Water collection, treatment and supply stood at 6.1 percent in first quarter of 2020 compared to 11.0 percent during the same period for the previous year (Table 2). The index for Water collection, treatment and supply stood at 144.3 basis point during the first quarter of 2020 compared to 136.0 basis point recorded during same period last year (Table 1).
Chart 3: Quarterly NPPI indices of Water collection, treatment and supply (December 2015=100)
Table 1: Namibia Producer Price Indices by industries (Dec 2015 = 100)
Year Manufacture of cement, lime and
plaster
Electric power generation,
transmission and distribution
Water collection, treatment and supply
2016
Q1 100.5 100.0 100.0Q2 101.5 100.0 110.1Q3 101.7 82.4 110.1Q4 102.3 82.4 110.1
2017
Q1 104.0 82.4 110.1Q2 107.4 82.4 122.5Q3 107.4 148.1 122.5Q4 107.4 148.1 122.5
2018
Q1 108.1 148.1 122.5Q2 109.5 148.1 136.0Q3 101.9 152.5 136.0Q4 98.1 152.5 136.0
2019
Q1 98.1 152.5 136.0Q2 98.1 152.5 144.3Q3 98.1 116.1 144.3Q4 98.1 116.1 144.3
2020 Q1 98.1 116.1 144.3
Namibia Producer Price Index | Q1 20204
Table 2: Percentage Change Over the same quarter a year earlier (December 2015=100)
Year
Manufacture of
cement, lime and plaster
Electric power generation,
transmission and distribution
Water collection, treatment and supply
2017
Q1 3.5 -17.6 10.1
Q2 5.8 -17.6 11.3
Q3 5.6 79.8 11.3
Q4 5.0 79.8 11.3
2018
Q1 4.0 79.8 11.3
Q2 2.0 79.8 11.0
Q3 -5.1 2.9 11.0
Q4 -8.6 2.9 11.0
2019
Q1 -9.2 2.9 11.0
Q2 -10.4 2.9 6.1
Q3 -3.7 -23.9 6.1
Q4 0.0 -23.9 6.12020 Q1 0.0 -23.9 6.1
5Namibia Producer Price Index | Q1 2020
Namibia Producer Price Index (NPPI): Technical notes
Definition The Producer Price Index (PPI) measures the average changes in the prices of goods and services received by domestic producers for the output which is sold on the domestic market as well as on export market. The Namibia PPIs are based on output indices. The concepts and definitions of the PPI largely follow the guidelines provided in the “IMF Producer Price Index Manual Theory and Practice
Scope of NPPIThe NPPI includes all goods and services produced within Namibia economic territory imports excluded. Prices collected for the compilation and production of the NPPI are the basic prices received by the producers for the sale of the products on the local market as well as at international markets (exports). These prices exclude all taxes on products such as excise duty, value added tax (VAT) and transport. Subsidies on products received by the producers are included. In the absence of a Statistical Business Register in Namibia, the selection of establishments were based on a judgmental sample from a list of known businesses maintained by NSA (National Accountants), expert opinion and practical knowledge of the market.
Classification of selected industries Industries are classified according to International Standard Industrial Classification of All Economic Activities (ISIC rev 4).
Determination of the weights and itemsEstablishment weights are based on 2015 production sales values for the sampled establishments. The selection of items was done using a cut off sampling, products were ranked in order of the value of sales by category and below 80% was used to select the products while in the case of establishments producing five products and below all products were selected for inclusion in the NPPI compilation.
Base periodThe base period for the Namibia Producer Price Index is December 2015=100.
Methodology The NPPI is calculated using a short-term Laspeyres formula. The major advantage of using modified Laspeyres is that it allows for substitution in elementary indices. The short–term Laspeyres index compares the previous period sales revenue for a set of goods to the current period revenue for the same set of goods.
The indices are weighted separately and it is not possible to combine them to produce an ‘average’ PPI for all three industries.
Release date: Next release date: 25 June 2020 24 September 2020
Namibia Producer Price Index | Q1 20206
Namibia Producer Price Index
NPPIFirst Quarter of 2020 Statistics Bulletin
Namibia Statistics Agency
Tel: +264 61 431 3200Fax: +264 61 431 3253Email: info@nsa.org.nawww.nsa.org.na
Namibia Statistics AgencyP.O. Box 2133, FGI House, Post Street Mall,
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