Mexico Producer & other price indices

Sample size: 600 generic products and services constitute the reference basket. Approximately 3,600 establishments are surveyed monthly to obtain data on 27,000 specific prices used to compile the NPPI.

Base period
The national reference period is December 2003=100.

Geographic coverage
Whole country.

Sector coverage
The index covers all economic activities: Agricultural, forestry and fishing, Mining and Quarrying, Manufacturing, Construction activities, Electricity and gas (includes water), Restaurants and hotels, Transport and communications and Communal, social and personal Services.

Commerce and Financial Services are not covered because of the methodological and practical difficulties involved in measuring them.

Key statistical concept

The National Producer Price Index (NPPI) is a group of indicators designed to measure the change over time in the prices of goods and services in a fixed basket that is representative of domestic production.

Prices are for specific goods and services that are part of the NPPI for a specified volume of sales. Therefore they include discounts and exclude transportation expenditures and indirect taxes on production and sales. Prices compiled for the NPPI can be classified into three groups: (a) LAB production plant, for the mining and industrial sectors; (b) wholesale prices in the supply centers of agricultural goods-producing areas; (c) consumer prices without indirect taxes for the services sector and for some merchandises.

Timing of price observations: For each specific price used in compiling the NPPI, the weighted monthly average price is calculated on the basis of number of days in effect of the cash prices for the month in question. Agricultural product prices are compiled weekly; for mining, the rule is to obtain prices for each business day of the month; for industry the rate is monthly; prices for construction and services are compiled fortnightly.

Price collection procedure: The data used to compile the NPPI are obtained from visits to domestic establishments producing goods and services that make up the NPPI sample. Prices are provided in special formats prepared by the Bank of Mexico or are taken from establishment price lists. All the data is requested on a voluntary basis, and absolute confidentiality is guaranteed.

Treatment of missing prices: When no data are available for any monthly observation, the previous price is maintained unchanged. If subsequent reports indicate a change in the price that month, the new price is included in the corresponding month since NPPI results are subject to revision following publication. For generalized changes prices are inputed for a similar product.

Selection of remplacement items: When a variety is permanently unavailable, the same data source is searched for the variety closest to the one which is discontinued. If there are no additional data in the source, the process is carried out in another establishment.

Adjustment of quality change: In gathering prices, care is taken to ensure that the characteristics of the goods remain constant. However, sometimes there is a change in product specifications. In those cases, in order to remove the value of the new characteristics from the price, a quality adjustment has to be made using either of the following two procedures: (a) Differences between the new product and its predecessor are identified to deduct from the new price the part that corresponds to the additional characteristics; and, (b) Unit prices are obtained for those products that change in weight or volume.

Introduction of new products: This has not been done since 2003 with the new structure.

Seasonal items: This is not done.

Classification(s) used
Mexican Catalogue of Economic Activities (CMAE-99)

Aggregation and consolidation

Formula for aggregation: Laspeyres formula with fixed weights (December 2003=100).

Weights

Source of weights: The scope of typical economic production was based on the results of the System of National Accounts, compiled by the National Institute of Statistics, Geography, and Information Technology (INEGI).

Weights reference period: Current weights are for 2003.

Frequency of weights update: Not defined. The last year for weight updates was 1993.

Seasonal adjustment
The data are not seasonally adjusted.

Country: MEXICO Subject: Producer Prices Index > Economic activities > Electricity gas & water supply > Domestic	MEX.PIEAEG02.......
Direct source The series is provided directly by the Banxico with December 2003=100 as reference period from January 1994. Sector coverage Electricity, Gas and Water Supply. Other coverage Domestic market. Weights Electricity, Gas and Water supply is 6.7613% of the PPI Industrial Activities in 2003.

Country: MEXICO Subject: Producer Prices Index > Economic activities > Manufacture of food products > Domestic	MEX.PIEAFD02.......
Direct source The series is provided directly by the Banxico with December 2003=100 as reference period from January 1994. Sector coverage Industries of Manufacturing of Food, Beverages and Tobacco. Other coverage Domestic market.

Country: MEXICO Subject: Producer Prices Index > Economic activities > Mining and quarrying activities > Domestic	MEX.PIEAMI02.......
Direct source The series is provided directly by the Banxico with December 2003=100 as reference period from January 1994. Sector coverage Mining and Quarrying. Other coverage Domestic market. Weights Mining and Quarrying is 4.6886% of the PPI Industrial Activities in 2003.

Country: MEXICO Subject: Producer Prices Index > Economic activities > Manufacturing > Domestic	MEX.PIEAMP02.......
Direct source The series is provided directly by the Banxico with December 2003=100 as reference period from January 1994. Sector coverage Manufacturing Industries. Other coverage Domestic market. Weights Manufacturing is 88.5501% of the PPI Industrial Activities in 2003.

Country: MEXICO
Subject: Producer Prices Index > Economic activities > Industrial activities > Domestic

MEX.PIEATI02.......

Direct source
The series is computed by the OECD with 2005=100 as reference year since January 1994 using weights and components (Reference period December 2003) provided by the Banxico.

Sector coverage
Mining and Quarrying, Manufacturing and Electricity, Gas and Water.

Other coverage
Domestic market.

Weights
PPI for Industrial activities is composed of Mining and Quarrying, Manufacturing and Electricity, Gas, and Water Supply which are respectivily 4.6886%, 88.5501% and 6.7613% of the PPI Industrial activities for domestic market in 2003.

For information, Mining and Quarrying is 1.8998%, Manufacturing 35.8804% and Electricity, Gas and Water Supply 2.7397% of the National Producer Price Indexes Total in 2003.

Country: MEXICO Subject: Producer Prices Index > Stage of processing > Finished goods > Domestic	MEX.PISPFG02.......
Direct source The series is provided directly by the Banxico with December 2003=100 as reference period from January 1981. Item coverage Finished goods. Other coverage Domestic market.