Object Required

The data were sourced from government websites and internet

Principle

Objective The purpose of this project is to evaluate if pps sampling is a good method for the Producer and Import Price Index. More widely, this also includes the development of a process for initiating new price quotations, a strategy for sample completion and a structure for the rotation of companies.

Theory

Approximately 4 000 prices are collected monthly from around 1 300 companies16. The data collected refer to domestic, export and import prices and monthly price indices are calculated for each of these main groups. With some exceptions, the survey's product coverage spans agriculture and forestry, fisheries, mining and quarrying and manufacturing, as well as electricity, gas, heat and water supply (CPA categories A-E). The Domestic Producer Price Index measures the development of prices for products that are manufactured and sold in Sweden. The Export Price Index measures producer price changes for goods sold for export, while the Import Price Index is the price index for imported goods. The Producer Price Index, PPI, combines the domestic and export sales producer price indices. The price indices calculated monthly are linked annually to the December index of the previous year. Data are collected roughly between the 1st and the 20th of the month after the statistical month concerned and are published around the 25th.

Interrelationships between the various price indices The price index at the producer and import stage is intended to reflect average price development, both overall and for various product groups. Prices are measured, respectively, at the first distribution stage, when the goods are supplied by the Swedish producer, and at the first purchasing stage, when the goods enter Sweden. Price index series, with a rough product group breakdown, have been calculated since 1860. From 1920 16 June 2004 Export Price Index EXPI Domestic Producer Price Index HMPI Import Price Index IMPI Producer Price Index PPI Price Index for Domestic supply

Conclusion

Different methods have different strengths and weaknesses and the purpose of this project has been to evaluate and weigh these back and forth. A pps sample brings the advantages that the units are drawn in an objective way and that such a method allows possibilities for estimates of sampling error and provides the weights. In reality, the current annual calculation of weights is very time inefficient and, with the pps sample method that itself provides the weights, a lot of time can be saved. These three important advantages, together with the fact that, as an extension, the pps sample drawn in 2003 introduced a new system regarding initiating new price quotations, sample completion and rotation, have led to the discovery of more strengths than hoped for. However, although it is practical to have a good system regarding the work with the sample, it is also essential to remember that this may involve more work. As written in the introduction, the current sample does not have any systematic process for these aspects, so introducing this will initially generate an increased need for resources. Also, the introduction of a pps sample does not solely increase the quality of the sample. To be able to obtain the best possible sample, there also have to be improvements regarding non-sampling error.

Published Date

11 Oct, 2018

BY- RAHUL TYAGI

BBA Program

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