The Industrial Price Index is a relative number weighted by the price change information of representative products of some representative enterprises collected through surveys to reflect the trend and degree of change in the prices of industrial goods. Including industrial factory price index and raw materials, fuel, power purchase price index, is to reflect the industrial enterprises factory commodity prices and industrial enterprises intermediate input price trend and the degree of change of the relative number, is one of the important indicators reflecting the operating conditions of the national economy, but also the formulation of relevant policies and the scientific basis for national economic accounting.
The industrial price index is one of the indicators reflecting the state of industrial development and one of the standards for measuring inflation (the other main standard is CPI).
At present, China's industrial price index of the investigation of more than 2700 kinds of products (specifications of more than 5000 kinds of products), has covered all 39 major categories of industrial industry, involving the investigation of 186 in the category (the coverage rate has exceeded 95%). More than 410 cities and counties across the country participated in the survey, and nearly 50,000 enterprises of various sizes and economic types were investigated.
From the connotation of the index and its links, the industrial price index mainly reflects the price changes in the field of production, i.e., the source and intermediate commodity price changes, in the middle and upper reaches of the price transmission system; the consumer price index mainly reflects the price changes in the field of consumption, i.e., the price changes in final consumer goods and services, in the lower reaches of the price transmission system and the terminal. In general, a sustained and significant increase in the prices of upstream commodities will gradually be transmitted to the price changes of downstream commodities. Based on the analysis of empirical data over the past nearly 20 years, the time lag for such transmission is about one and a half years. However, under market economy conditions, whether price increases of certain upstream commodities can be transmitted to the downstream mainly depends on the supply and demand situation, supply and demand elasticity, and the length of the industrial chain of such commodities. Therefore, in recent years, the price transmission relationship between upstream and downstream commodities has seen some new changes, manifested in the prolongation of the transmission time lag and the weakening of the transmission effect in certain aspects. In this regard, we should further study the price transmission mechanism under the new situation, neither completely negate the role of price transmission, and do not arbitrarily exaggerate and speculate on the transmission effect, not to mention the new changes in the price transmission mechanism, but also because of the price index to doubt the accuracy and scientific.
The content of the industrial price index
The current industrial price index includes two aspects:
(1) industrial factory price index;
(2) industrial intermediate input price index.
The significance of the industrial price index
(1) is an important part of China's price system.
(2) is to observe and analyze the product difference than the basis of price relations.
(3) is the basis for national economic planning, management and forecasting.
(4) is the measurement of a certain region, a certain period of time on the basis of the purchasing power of industrial currency.
(5) is the basis for calculating the value added of industry at constant prices and the speed of industrial development.
Comparable industrial value added in the reporting period = total industrial output value at current prices in the reporting period × the rate of industrial value added in the previous year / factory price index of industrial products in the reporting period
The development rate of industrial production = comparable industrial value added in the reporting period / the current industrial value added in the base period × 100%
There are two methods for calculating the total value added of comparable industrial value added:
(1) Total Reduction method: applicable to the calculation of the total of the various grouping indicators, such as the various economic components of the grouping indicators.
(2) Sub-industry (medium category) reduction method: this method is more accurate to calculate the development rate of industrial sectors.
The compilation of industrial price index
1, the compilation of industrial price index group
China's current compilation of industrial price index of ex-factory four groupings: (1) light and heavy industry grouping; (2) means of production and means of subsistence grouping; (3) the industrial sector grouping; (4) industrial sector grouping.
There are two kinds of groupings for the Purchase Price Index of Raw Materials, Fuel and Power: (1) Material Category Grouping; (2) Industrial Sector Grouping.
2, the compilation of industrial price indexes mainly to solve the following problems:
(1) Selection of representative products to develop a catalog of industrial price surveys to follow the following principles:
Selection of representative products by industrial sector.
Select products that have a great impact on the national economy and people's livelihood.
Select products with more stable production.
Select products with development prospects.
Select products with local characteristics.
(2) the selection of representative enterprises to follow the following principles:
Selection of survey enterprises by industrial sector, in principle, all medium-sized industries should have survey enterprises.
Large enterprises should try to be selected (or a considerable proportion).
Select enterprises with stable and normal production as the survey object.
To take into account different forms of ownership.
(3) price survey method
The use of enterprise statement form.
(4) Determination of weights
The current factory price index of industrial products adopts the method of stratified apportionment of weights by industry to determine the weights.
The Purchase Price Index of Raw Materials, Fuel and Power adopts direct weights.