|
Related Topics |
|
We take a look at the producer price index (PPI) for motor vehicles and compare it to the Unit Value Index (UVI) for motor vehicles. UVI's measure import prices, so in this case we are comparing the producer inflation recorded by motor vehicle manufacturers in SA and comparing it to motor vehicle imports inflation.
|
|
Producer Price Index inflation for motor vehicles compared to motor vehicle imports inflation
The line graph below shows the year on year inflation rate for the producer price index for motor vehicles as well as the year on year inflation rate for the motor vehicles UVI (basically the import prices for motor vehicles). And while the trend of the two series are very similar. The level of price change growth is vastly different, with a particular divergence starting to take place since January 2018.
The inflation rate of producers of motor vehicles has significantly outstripped that of motor vehicle imports. With the average inflation rate for both for 2018 (up to November 2018) being as follows:
However when looking at a longer time span, say year on year growth rates from the start of 2013, then the average inflation rate per month is measured as follows:
And from the start of 2012 up to November 2018 the two indices recorded the following growth rate over this period:
So while they record very similar inflation rates over a long period of time, the movements over the short term between the producer inflation rate for vehicles and the import inflation rate for vehicles differ vastly, as the graphic and the average growth rate for 2018 as calculated earlier shows.
- PPI Motor Vehicles: 14.1%
- UVI Motor Vehicles:1%
However when looking at a longer time span, say year on year growth rates from the start of 2013, then the average inflation rate per month is measured as follows:
- PPI Motor Vehicles: 6.5%
- UVI Motor Vehicles:7%
And from the start of 2012 up to November 2018 the two indices recorded the following growth rate over this period:
- PPI Motor Vehicles: 50.7%
- UVI Motor Vehicles:53.6%
So while they record very similar inflation rates over a long period of time, the movements over the short term between the producer inflation rate for vehicles and the import inflation rate for vehicles differ vastly, as the graphic and the average growth rate for 2018 as calculated earlier shows.