Producer Price Index of Seychelles

The Producer Price Index (PPI) and Industrial Production Index (IPI) are compiled on a monthly basis. The PPI measures changes in the price of products produced by the Seychelles manufacturing industry where as the IPI measures changes in the volumes of goods produced by manufacturers over time. The reference period for both indices is 2013=100. The PPI measures price movements and not actual price levels. It is important to note that the PPI measures price change from the producer perspective and not from the household perspective (which is measured in the Consumer Price Index). An important use of the PPI is as a deflator for National Accounts to produce GDP in volume measures. The IPI is also used as a key input for calculating volume measures as part of the compilation of the quarterly National Accounts. The commodities in the basket for both indices are classified according to the UN ISIC (International Standard Industrial Classification) Rev 4. Currently, the index coverage is limited to Section C Manufacturing and includes only those Divisions for which there is manufacturing activity in the Seychelles.