Background

The Producer Price Index (PPI) is a family of indexes that measures the average change over time in the selling prices received by domestic producers of goods and services. Unlike the Consumer Price Index (CPI), which reflects changes in prices from the buyer’s perspective, PPIs focus on price variations from the seller’s viewpoint. Discrepancies between seller and buyer prices can arise due to factors such as government subsidies, sales and excise taxes, and distribution expenses. PPI data are extensively utilized by both businesses and governmental bodies.

Recently, there has been a recognized lack of consensus regarding methodological approaches to price indices, necessitating further examination and analysis. Concerns about accuracy and the limited availability of price indices in certain regions prompted MEFMI to organize a seminar focusing on the compilation of the PPI.

Objective

The seminar aims to draw on diverse country experiences and expertise to identify practical and appropriate measurement methodologies for the region. This effort will assist countries in producing their PPIs consistently, enabling users to make meaningful international comparisons.

Content

The workshop will cover a step-by-step demonstration of the system functionalities. This will include training on the following, among others:

• i. Conceptual framework
• ii. Target population
• iii. Sampling and weighting techniques
• iv. Selection of sample items and establishments
• v. Development of specifications
• vi. Collection and processing of data
• vii. Construction of index numbers
• viii. Seasonal items and other special problem areas
• ix. Quality adjustments
• x. Data collection and conceptual problems in the informal sector
• xi. Publication, presentation, and dissemination of data
• xii. Uses of price index data
• xiii. Application of price index data

Target Group

This seminar targets junior to middle-level staff responsible for compiling and reporting macroeconomic statistics in National Statistics Offices, Central Banks, and Ministries of Finance.