Economic Statistic Directorate
Producer Price Index in Palestine
Ashraf Samara
2016
Producer Price Index in Palestine
Cotenant:
 Introduction
 Definition
 Classification
 Sampling
 Data collection
 Calculation
 Publishing
Producer Price Index in Palestine
Introduction:
 Since start producing PPI, PCBS follow the international
standard and recommendations, based on producer price
index manual.
 PCBS start produce PPI since 1997 .
 From 1997 – 2005 it was produced annually.
 From 2006– 2010 it was produced quarterly.
 Since 2011 became on monthly base(met SDDS).
Producer Price Index in Palestine
Definition:
 Producer price: the amount received by producer from
the purchaser for a unit of a good or service produced as
output, minus any VAT or similar deductible tax, invoiced
to the purchaser. The producer prices exclude any
transport charges invoiced separately by the producer.
Producer Price Index in Palestine
Classification:
 Since 2015 PCPS start use ISIC4





•
Agriculture, forestry and fishing, 143 item.
Mining and quarrying , 11 item.
Manufacturing, 742 item.
Electricity, gas, steam and air conditioning supply, 6 item.
Water supply; sewerage, waste management and remediation
activities, 10 item.
Total number of item include in Produce basket 912 items
Producer Price Index in Palestine
Weighting System for PPI :
Total Production
Locally Consumed Products,
0.89%
Exported Products, 0.11%
Agricultural Production, 0.25%
Total Production
Industrial Production, 0.75%
Producer Price Index in Palestine
Weighting for main activity, PPI 2013
Producer Price Index in Palestine
 Sampling:
Select Economic Activities
• Select the Division , ISIC – 4.
• Select the Main Activities 2% and above from each
Division.
Select Region
• Frame of all industrial establishment, with information
about production, region, government, number of
employee, value added.
Select outlet
• Distribution by region.
• Select economic activities.
• Select establishment, 70% and above in each economic
activities .
Select Production line under
each activity in each
establishment
Select item
• Select production line 70% and above in each activities in
the establishment.
• Select item 70% and above in each product line in the
establishment.
• Determine if its local consumed or to export.
• is there a discrimination price policy.
Producer Price Index in Palestine
 Data collection: During the first 15 days of the next month
to price reference month.
 Calculation: Laspeyres equation.
 Publishing: on monthly basis with 29 days timelines.
Relative Importance of the Main Activity and its Impact on PPI: 2013
Production, Number of Establishments and its impact on PPI: 2013
1
Total Production ,376,636.07 (thosend US$)
0.9
# of establishment 380
0.8
0.7
0.6
0.5
Total Production ,
,
(thosend US$)
Total Production ,
,
(thosend US$)
# of establishment 295
# of establishment 85
Impact on total production 0.79
Impact on total production 0.21
0.4
0.3
0.2
0.1
0
West Bank
Gaza Strip
Thank you