Data Collection
Business Price Index: March 2016 quarter
Methodology
This BPI release includes the March 2016 quarter PPI, CGPI, and farm expenses price index (FEPI) data.
Response rates for March 2016 quarter
Key firms Achieved: 100 percent Target: 100 percent
Non-key firms Achieved: 97 percent Target: 96 percent
Annual update of weights
After implementing the Australian and New Zealand Standard Industrial Classification 2006 (ANZSIC06) in the March 2011 quarter, we update the producers price index (PPI) industry and commodity weights annually. We source the weights from the supply and use tables (SUT) produced annually as part of the New Zealand System of National Accounts. The weights associated with the commodities, and the weights attached to each industry, are therefore annually chain-linked. This reflects changes in economy-wide income and expenditure in the mix of products and the mix of industries.
The new weights introduced in the March 2016 quarter are generally sourced from the 2012/13 SUT and expressed in the prices of the December 2015 quarter. We are using these weights to weight price movements from the December 2015 quarter to the March, June, September, and December 2016 quarters.
Exchange rates
The New Zealand dollar appreciated against three key currencies (US dollar, UK pound, and Australian dollar) and depreciated against the Japanese yen and the Euro, when comparing the mid-point of the December 2015 and March 2016 quarters. A depreciating NZ dollar has an upward influence on the prices New Zealand producers pay for imported goods and services, and the prices received for exports.
When calculating the PPI and CGPI, we generally use prices collected on the 15th day of the middle month in the quarter to represent the entire quarter. When these prices are collected in foreign currencies, they are converted to NZ dollars using the exchange rate at the mid-point of the quarter.
The table below shows changes in the value of the NZ dollar in foreign currency denominations, from the mid-point of the December 2015 quarter to the mid-point of the March 2016 quarter.
| Exchange rates | |||||
|---|---|---|---|---|---|
| Bank selling rates for NZ$1.00 | |||||
| USA (NZ$:US$) | UK (NZ$:pound) | Australia (NZ$:AUS$) | Japan (NZ$:yen) | Europe (NZ$:euro) | |
| 15 November 2015 | 0.6410 | 0.4202 | 0.8993 | 78.1800 | 0.5938 |
| 15 February 2016 | 0.6499 | 0.4473 | 0.9106 | 73.4000 | 0.5756 |
| Percentage change | 1.4 | 6.4 | 1.3 | -6.1 | -3.1 |
| Source: Westpac Banking Corporation |
For a limited number of prices (e.g. petroleum product manufacturing) we use quarterly average prices. For these prices, the relevant exchange-rate movements are based on the average exchange rate for the quarter.
en-NZ
