Türkiye - Producer Price Index (PPI)

For Turkiye, a monthly producer price index from 1982, with detail from 1994. PPI is a measure of the change in the prices of goods sold as output by domestic producers.

Active:

• Classification: NACE Rev. 2
• Measurement: Fixed-base index relative to 2003 (Index 2003=100)
• Adjustment: Not seasonally adjusted (NSA)
• Native frequency: Monthly
• Start dates:
  • 1982m1 for general index
  • 1994m1 for most
  • 2003m1
  • 2011m12
  • 2013m12

Predecessor:

• NACE Rev. 1 - 2003m1 to 2013m12 ("_N1")

The source writes:

Data are disseminated on the producer price index, a Laspeyres index (2003=100) covering the agricultural, manufacturing, mining and energy sectors nationwide. The index is updated every year.

The index is compiled for the total, and for the main economic activities according to NACE Rev. 1.

The news release "Producer Price Index Results" publishes the following: (1) data for the reference month showing indices for the total; and (2) data for the reference month compared with the same month of the previous year showing indices for the sectors and sub-sectors.

The indices are not seasonally adjusted.

Definition: Producer Price Index (PPI) is a measure of the change in the prices of goods and services sold as output by domestic producers. The industry part of PPI corresponds with output prices definition that is given in Methodology of Short-Term Business Statistics by Eurostat and is not included exports. However in the current situation industrial PPI does not cover exports that is difference from the methodology mentioned.

Classification: Items are classified according to the NACE, Revision 1. Sectors A (Agriculture, Hunting and Forestry), B (Fishing), C (Mining and Stone Quarrying), D (Manufactoring) and E (Energy) are covered.

Scope of the data

• Industrial coverage: All producer units which have a certain share in production are covered. The value of exports is subtracted from the total value of commodities.
• Product coverage: The commodities which have the largest value of domestic sales from production are chosen for the index. The index covers approximately 768 items from a survey of 1,800 firms representing coverage of 70-80 percent of the nationwide share in total production.
• Geographical coverage: The Producer Price Index is not calculated separately for the regions. Firms having a certain share in production are covered without a regional or provincial separation. The geographical coverage is overall Turkey.

Valuation

Types of prices: Prices are cash prices, excluding VAT and all relevant taxes.

Source data collection programs 

The data are obtained from a survey of approximately 1,700 firms, representing coverage of 70-80 percent of the nationwide share in total production.

• Sources of weights: The weights used for the index are based on the industrial production data and agricultural and mining and energy censuses of 2005. Data are compiled from survey results. Different searches (Producer Price Index Survey for Producer Firms, Industry censuses, GNP data) are made depending on the sectors. Probability proportional to size is the sampling method used in the selection of items and firms.
• Establishment selection: The firms included in the judgmental sample are those whose domestic sales are equal to at least 80% of the commodity-group total.
• Product selection: In selection of products to be covered in the index the following criteria are followed:
  • product must have a high share in domestic production and sales;
  • product must be clearly defined and have an easily determinable unit price;
  • product should have continuity in sales from production.
• Product specification: For some products, codes are used while for some other products, detailed descriptions such as colour, design, dimension, packaging, type, measurement unit are used.
• Sample sizes: 1,800 establishments and 768 commodities.
• Price collection method: Questionnaires in paper form are filled out by firms and faxed or mailed to the regional offices or to the center of the Institute.

Source data definitions, scope, classifications, valuation, and time of recording

• Types of prices: The survey includes net transaction prices received by producers for products sold within the reference month. The prices exclude the value-added tax and excise tax.
• Timing of price observation: Prices of products (except vegetables, fruits and fishes) are compiled in the sampled establishments on the 5th, 15th and 25th days of each month. For vegetables, fruits and fishes, prices are collected in the first two weeks of the month and these prices are weighted by quantities to obtain the average price for each item.

Source data statistical techniques

• Treatment of missing prices: If the current variety is temporarily (1 or 2 months) unavailable, the previous month's price is treated as the current month price.
• Selection of replacement items: If an item is no longer produced or if it is not sold in the domestic market, another commodity having the same quality, same type of packaging with the same production and sale characteristics is chosen.
• Introducing new products: When a new product appears in the market, it is left out of the index up until the period in which weights are updated.
• Seasonal items: Changing weights are applied for seasonal items. For this reason, zero weights are given to the temporarily unavailable items.

Validation of intermediate results

Verification of prices: The initial analyses of the data obtained from the price collection forms are carried out on PCs. The information related to the month for which index is to be calculated is checked through the use of various programs. Identified problems are further analyzed by directly communicating with the establishments.

Moody's Analytics supplements

For the general index, we construct a seasonally adjusted counterpart.

No. The data are final when first released and are not subject to revision.

Further reading

At IMF (SDDS):

• Price index: Producer prices (Jan 2023)

• Sep 2005 - Initial version.
• Feb 2012 - Moody's Analytics enhancements: back-extended and SA.
• Feb 2014 - Reclassified to NACE Rev. 2.
• 11 Aug 2023, Phillip Thorne - Inserted country name "Turkiye," Properties, Further reading.