When we look at business price indices for the March 2024 quarter, we find that there are notable changes in several key sectors. Some of these indicators are:
Oil and Gas Sector: Oil prices witnessed a significant increase during this quarter. Prices were affected by several factors such as increased global demand for oil and political tensions in oil production areas. This rise in prices is due to the increased cost of oil production
Technology sector: Prices of electronic and technology devices witnessed a significant decline during this quarter. This is partly due to increased competition among manufacturers and technology advancing at a rapid pace, which leads to lower prices to attract more customers.
Real estate sector: Real estate prices witnessed relative stability during this quarter. After a period of strong growth in the real estate markets, prices have begun to stabilize with a good supply of residential and commercial units available. Ownership of owner-occupied homes increased by 1.2 percent. This may be due to an increase in the number of people buying and owning their own homes, reflecting positive activity in real estate market.
Automotive sector: Car prices witnessed a significant increase during this quarter. Prices were affected by increased production costs and rising prices of raw materials, in addition to the impact of a global electronic chip shortage that affected automobile production.
These are just some general indicators about business prices in the March quarter 2024. It should be noted that this information is fictional and not based on real events. To learn more about the actual indicators of business prices, it is recommended to consult reliable reports and sources in economics and business.
In the March quarter of 2024 compared to the December quarter of 2023:
• The producer price index rose by 0.9 percent
About the three indicators
Producer Price Index (PPI): The Producer Price Index (PPI) is one of the economic indicators that measures the change in the prices of products and services sold by companies and producers in the production stage. It is calculated based on a basket of goods and services representing the economic sector being tracked.
Capital Goods Price Index (CGPI): The Capital Goods Price Index (CGPI) measures the change in prices of goods and products used in production processes, including equipment, machinery, and raw materials. This indicator is important for understanding inflation at the level of production and related sectors of the economy.
Farm Expenditures Price Index (FEPI): The Farm Expenditures Price Index (FEPI) tracks price changes for raw materials and supplies that farmers use in their agricultural operations. This index includes costs such as fertilizers, fuel, pesticides and agricultural equipment. The FEPI reflects changes in agricultural production costs and influences the determination of prices for final agricultural products.
These indicators are used in analyzes of the national economy, forecasting inflation, and assessing the health of the economy. Provides knowledge of business price changes and helps in making strategic investment and economic decisions.
There appears to be an improvement in the overall BPI response rate in the March 2024 quarter, with the response rate reaching 94.8 per cent compared to the target target of 96 per cent. Although the rate did not exactly reach the target target, it reflects an improvement compared to previous periods.
The largest contributions of the production industry are represented in the following sectors:
Electricity and Gas Industry: Recorded an 8.8 percent increase in electricity and gas supplies. This rise can be explained by the increased demand for energy and the continued reliance on electricity and gas in production processes.
The largest input industry contributions
The following sectors recorded the following changes: Electricity and gas industry: recorded an 11.6 percent increase in electricity and gas supplies. This indicates an increase in production and expansion in this vital sector.
Meat and meat products manufacturing sector: recorded a decrease of 3.8 percent. This may be the result of changes in demand for meat products and shifts in consumer tastes.
Insurance and retirement funds: recorded an increase of 5.0 percent. This can be explained by increased interest in insurance and retirement and increased deposits and investments in these funds. This relative analysis reflects changes in industries’ contributions to production and inputs, and may provide a better understanding of the pattern of economic activity in the given time period.
In addition, a very high response rate was achieved for key businesses, with a response rate of 99.4 percent compared to the targeted target of 100 percent. This is considered a positive indicator because major companies play a crucial role in shaping the BPI. To achieve a high response rate, it is recommended to increase inclusion and ensure prices are updated regularly. When a response cannot be obtained from respondents, historical prices can be used to maintain data continuity and provide reasonable price estimates. As the response rate continues to improve and data quality updates, the Business Price Index (BPI) could become a powerful tool for assessing inflation and analyzing prices in the economy. Feel free to continue working on improving the response rate and updating the data to maintain the accuracy and quality of the indicator.
BPI Data Quality Updates: In the March 2024 quarter, the overall response rate was 94.8 percent (target response rate of 96 percent). The response rate for the main companies reached 99.4 percent (target response rate of 100 percent)
