Import Price Index QoQ

The Import Price Index (IPI) tracks quarterly price change for imports landed in Australia. It is the import leg of International Trade Price Indexes, Australia, from the Australian Bureau of Statistics. Prices come from the Survey of Producer Prices, using actual prices from major importers.

Prices are free on board at the country of origin in Australian dollars, excluding freight, insurance and import taxes. It holds quality steady and covers goods only, not services, values or household prices. It helps deflate trade values for volume measures, signals short-term inflation and feeds terms of trade.

Prices relate to goods arriving in quarters ending March, June, September and December, with collection spread across the quarter. It is released on Thursday no later than 33 days after quarter end at 11:30am Canberra local time. Each release shows quarter-on-quarter and through-the-year changes for import and export prices, main contributors, tables, charts and points contributions.

Index numbers are final at first publication and revised only in exceptional cases. June quarter contributions are updated at each September reweight. All series are published without seasonal adjustment.

The index follows the fourth revision of the Standard International Trade Classification across six groups.

• Machinery and transport equipment, 42.00%: covers road vehicles, electrical machinery, industrial machinery and telecommunications and sound equipment.
• Mineral fuels, lubricants and related materials, 13.67%: mainly petroleum products, plus gas and a small coal share.
• Miscellaneous manufactured articles, 13.58%: covers apparel, furniture, footwear and scientific instruments.
• Chemicals and related products, 10.87%: mainly medicinal products, plus perfumes, fertilisers, plastics and other chemicals.
• Manufactured goods classified chiefly by material, 10.69%: covers metal, rubber, paper, textile and mineral products.
• Other sections: food and live animals, gold, beverages, crude materials and vegetable oils.

In the September quarter 2023 (published October 26, 2023) the index rose 0.8% in the quarter and fell 2.4% through the year. Petroleum products rose 9.4% on supply cuts and road vehicles rose 1.3% as demand outpaced supply. These gains were offset by inorganic chemicals down 18.5% on excess supply, medicinal products down 2.9%, paper down 8.0% and telecommunications equipment down 1.6%. The small rise thus netted large opposing moves, while the reweight revised June quarter contributions.

1. Select items and weights: Items are chosen by import value in the year before the index year, with weights from the same trade values. Small unpriced items take the weight of similar products expected to move the same way.
2. Price-update weights to the link period: New weights are revalued to June quarter price levels using price change since the weight year. The June quarter is the link period where new weights join the series.
3. Collect prices to constant quality: The main method is specification pricing of the same fully described product with each seller. If quality changes, prices are adjusted so the index shows pure price change only.
4. Convert foreign currency prices: Prices in foreign currency are converted to Australian dollars at relevant exchange rates, excluding forward cover.

For example, 200 United States dollars at 0.75 per Australian dollar equals 266.67 Australian dollars, and at 0.80 equals 250.00, down 6.25%.

1. Combine with a chained Lowe index: Lowest level indexes feed a Lowe index, a Laspeyres type using earlier weight-year quantities, reweighted each year. Each September new weights are linked to the June quarter level, keeping 2011-12 equals 100.0 as the reference.
2. Express movements: Quarter change equals new index minus old index divided by old index times 100. Financial year averages cover the four quarters. Points contributions show each part's share of the total and compare only within one linking span.