Producer Price Index YoY

Producer Price Index YoY tracks annual seller price change across Australia, where YoY means versus the same quarter last year. The ABS (Australian Bureau of Statistics), Australia's independent statistical authority, publishes it via the quarterly Survey of Producer Prices. It measures goods and services leaving or entering production from sellers' view, unlike CPI (Consumer Price Index, buyers' perspective). It covers goods and services produced nationally under ANZSIC 2006, with selected indexes at state or capital-city level. Headline Final demand covers finished products needing no further processing for domestic consumption and capital formation, including imports and excluding exports. It tracks price change within each index on a 2011-12 = 100.0 base, not what households pay or price levels across industries.

Quarters end in March, June, September and December; prices are observed during the quarter across its 13 weeks. PPI arrives quarterly on Friday no later than 33 days after quarter end at 11:30am Canberra time, with no monthly or flash release. Trade prices arrive Thursday the same week.

All figures stay embargoed until release, then reach everyone together free of charge on the ABS website. Index numbers are final, revised only in exceptional significant cases with reasons given. Each release brings commentary, Excel tables, data cubes, quarter-on-quarter and YoY changes and points contributions.

Final demand moves with construction, mining, manufacturing and selected services, plus shifting fuel and property costs.

• Final demand (excluding exports): economy-wide finished products for domestic use, including imports and excluding exports.
• Output of Mining industries: domestic oil and gas extraction prices for National Accounts deflation.
• Input to Coal mining: products used by coal mines at purchasers' prices, delivered to the mine site.
• Manufacturing output and input: all products made or used by manufacturers, including trade within the industry.
• Building, civil engineering and house materials: builders' selling prices for homes, commercial buildings, roads and bridges, plus materials delivered to site.
• Output of Services: selected services from transport to health, with unique jobs priced by models or hourly rates.

In December quarter 2023 (released February 2, 2024) Final demand rose 0.9% in the quarter and 4.1% over the year, led by building construction. Domestic gas extraction fell 1.3% in the quarter but rose 8.6% over 12 months, against the headline. Manufacturing inputs rose 0.3% in the quarter yet fell 2.0% over 12 months, while coal mining inputs rose 2.1% as diesel rose and electricity fell.

Building construction rose 1.9% in the quarter and 5.4% over the year. This shows components can move against the headline and a quarterly signal can oppose the annual one.

1. Fixed basket: quantities stay fixed from an earlier weight period, such as 2018-19 Input-Output tables, in a Lowe index.
2. Collect prices: each quarter precisely specified products are re-priced at actual transaction prices net of discounts, using judgmental selection with no fixed sample size. Quality stays constant through specification pricing across 13 weeks. Output uses basic prices excluding taxes, transport and margins; input uses purchasers' prices as delivered.
3. Elementary aggregates: similar products form the lowest groups with mostly equal weights, and unsampled items take the group's average move.
4. Aggregate with the Lowe index: groups combine by value weights: I^t = [sum(p^t q^b) / sum(p^0 q^b)] x 100. Example: 1000 units at $2.00 plus 500 kg at $5.00 gives $4500, or 100.0. At $2.10 it gives $4600, or 102.2, up 2.2%, and 3.2% if the base was 99.0.
5. Linking: new weights link to the old series to keep one continuous series at 2011-12 = 100.0 with stated exceptions.
6. Published movements: changes come from indexes rounded to one decimal: the quarter compares I_t with I_{t-1}, and YoY compares I_t with I_{t-4}. Points contributions run to two decimals and financial-year averages are simple means of the four rounded quarters, with no seasonal adjustment.