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WITHDRAWN - Price Indices

Keywords: Producer Price Index, Manufacturing, Deflators, Index of Production

The compilation of Producer Prices Indices for Manufacturing (PPI-M) was only started in Uganda in 2004 with the technical assistance from the IMFEastAfritac. Uganda is one of the only 4 or so African countries compiling Producer Prices for Manufacturing. Since 2004, the Uganda Bureau of Statistics has been producing PPIs initially for the manufacturing sector; this was expanded to cover the Accomodation & Food Services sector. The Bureau is now in the process of expanding productions of PPIs to other production & service sectors.

In addition, with the regular production of the PPI-Ms, there has been a shift in the methodology of compiling the Index of Industrial Production from the traditional known method of using production quantities obtained from the monthly survey of industrial establishments to the deflated sales method which makes use of the PPIs to deflate the turnover data.

In this paper I look at the challenges the Statistics office faces in compiling Producer Prices for manufacturing and their inherent use as deflators for the Index of Production. These challenges range from determining the appropriate activity combination, weighting, timeliness and methodology.