Mmegi Online :: Statistics Botswana could launch PPI by September
Banners
Banners
Banners
Banners
Last Updated
Wednesday 17 July 2019, 16:13 pm.
Banners
Statistics Botswana could launch PPI by September

The International Monetary Fund (IMF) is handholding Statistics Botswana (SB) to develop a new price index that could be launched by September, initially focussing on mining and quarrying.
By Pauline Dikuelo Fri 14 Jun 2019, 13:04 pm (GMT +2)
Mmegi Online :: Statistics Botswana could launch PPI by September








The planned Producer Price Index (PPI) would measure the average change over time in selling prices received by domestic producers for their output.  The prices included in the PPI are from the first commercial transaction for many products and some services.

At present, inflation in Botswana is measured via the Consumer Price Index where the prices of goods and services also include taxes, transport and mark ups by businesses.  By focussing strictly on the prices manufacturers receive for their goods and services, the PPI helps develop a more accurate picture of inflation for policymakers and other players looking at trends such as disposable incomes and the strength of the pula.

In a report seen by BusinessWeek on Wednesday, IMF officials said SB had already finalised the basket and weights for a mining and quarrying PPI.  The mining and quarrying industry is dominated by diamond mining, which represents over 90% of all mining activity according to the 2017 weights, which were compiled using data from all Botswana mining establishments.

The dissemination of a PPI for mining and quarrying would provide a sound basis for the ongoing development of PPI’s covering of other important sectors of the economy, which would be aligned to the requirements of national accounts, IMF officials said.

A broader PPI would include sectors such as

Banners

agricultural products, water and electricity and others. “In the medium term, SB should expand PPI coverage to include other activities,” a report compiled by the IMF team reads.

“The previous (IMF) mission suggested indices for agriculture, utilities and manufacturing should be developed, which along with mining, would represent approximately 30% of the total GDP, based on the 2016 Botswana national accounts data.”

The PPI covering agriculture, for instance, is expected to work through the prices for crops provided by Botswana Agricultural Marketing Board and the prices of livestock provided by the Botswana Meat Commission.

For commodities such as poultry and eggs, the IMF has recommended that SB meet with industry players to develop adequate data.

Data from the horticultural sector is providing a challenge as the farmers who should provide the prices have reportedly not been responding to requests for updated information. The IMF, however, said the agricultural PPI could proceed without horticulture for now.

The PPI in September will be historic for Botswana.

“This will be the first dissemination of a PPI by SB, so they should initiate outreach activities with key data users such as national accounts and the central bank, to explain PPI concepts and methods. This will provide confidence that the price development for mining is in line with expectations,” IMF officials said.

Subscribe to our Newsletter
Banners
Banners
Banners


Business
Fri 14 Jun 2019, 18:00 pm
Fri 14 Jun 2019, 13:07 pm
Fri 14 Jun 2019, 13:05 pm
Fri 14 Jun 2019, 13:04 pm
Fri 07 Jun 2019, 18:00 pm
Fri 07 Jun 2019, 12:44 pm
Fri 07 Jun 2019, 12:44 pm
Fri 07 Jun 2019, 12:44 pm
Fri 07 Jun 2019, 12:40 pm
Fri 31 May 2019, 21:05 pm
Fri 31 May 2019, 21:04 pm
Fri 31 May 2019, 20:59 pm
Fri 31 May 2019, 20:49 pm
Fri 31 May 2019, 20:49 pm
Tue 28 May 2019, 14:44 pm
Fri 24 May 2019, 13:47 pm
Fri 24 May 2019, 13:36 pm
Fri 24 May 2019, 13:35 pm
Fri 24 May 2019, 13:27 pm
Fri 24 May 2019, 13:15 pm
Fri 24 May 2019, 13:12 pm
Thu 23 May 2019, 16:14 pm
Wed 22 May 2019, 16:06 pm
Tue 21 May 2019, 17:01 pm
Fri 17 May 2019, 13:08 pm
Banners
Banners
Subscribe to our Newsletter
have a story? Send us a Tip
Banners
  • Previous
    The Lion King
    Next
    Masa Centre
    ::: Wednesday 17 Jul - Thursday 25 Jul :::
    The Lion King
    Spider-Man: Far from Home
    Anna
    Stuber
  • Previous
    X-Men: Dark Phoenix
    Next
    Riverwalk
    ::: Monday 17 Jun - Saturday 17 Jun :::
    X-Men: Dark Phoenix
    Child's Play
    The Lion King
    Spider-Man: Far from Home
    Anna
  • Previous
    Child
    Next
    Gamecity
    ::: Wednesday 17 Jul - Thursday 25 Jul :::
    Child's Play
    The Lion King
    Spider-Man: Far from Home
    Avengers: Endgame
Selefu
Let
Banners

gramstalker

Banners