1. Regional Seminar on Developing a Program for the Implementation of the 2008 SNA and Supporting Statistics Yaşar Pınar ÖZMEN 11-13 September 2013 Ankara - Turkey

2. Producer Price Index (PPI) Definition PPI History in Turkey PPI Coverage Coverage by Numbers Classification Data Sources Sampling PPI weights (2013) 10/1/20162 Prices Index Aggregation Formula Reference Period Laspeyres Aggregation Annual Update System Dissemination PPI Uses in Turkey Future Plans National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara – Turkey

3. Definition Producer Price Index (PPI), measures the average change over time in the selling prices received by domestic producers for their output. PPI for Turkey, measures the average change over time in the selling prices in domestic market, received by domestic producers for their output. “PPI for Domestic Sales” PPI for non-domestic sales is work in progress. 10/1/20163 National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara – Turkey

4. PPI History in Turkey PPI for the first time was published at the beginning of 2005 as the base year 2003. Wholesale Price Index (WPI) as the base year 1981, 1987 and 1994 had been calculated before 2005. The main difference between PPI and WPI is about taxes and product coverage. PPI excludes taxes on products while WPI includes. Producer prices are collected from producer enterprises, wholesale prices are from traders so it also includes imported products. 10/1/20164 National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara – Turkey

5. PPI Coverage Geographical coverage: All country Sector / product coverage: A- Agriculture, hunting and forestry B- Fishing C- Mining and stone quarrying D- Manufacturing industry E- Electricity, gas and water. 10/1/20165 National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara – Turkey

6. Coverage Information by Numbers 10/1/20166 Main Sectors ProductsPrice Channels/ Enterprises Prices Industry 682 1 860 4 648 Mining and stone quarrying 29 91 140 Manufacturing 647 1 746 4 450 Electricity, gas and water 6 23 58 Agriculture 106 769 6 759 A total of 788 products are covered in 2013. National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara – Turkey

7. Classification Index structure is based upon: Statistical Classification of Economic Activities in the European Community (NACE) Statistical Classification of Products by Activity in the European Economic Community (CPA) PRODCOM list (ProdTR) 10/1/20167 National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara – Turkey

8. Data Sources Sectoral weights are based on production values in National Accounts. Sampling and weights of products and enterprises are derived from the following surveys: Industrial Production and Turnover data Annual Industrial Products (Prodcom) Statistics 10/1/20168 National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara – Turkey

9. Sampling According to sales value in a product group, enterprises dominate at least 80% of the market are sampled. Judgemental sampling is used for some large groups. Product/transaction selection is made by the reporting enterprise. 10/1/20169 National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara – Turkey

10. PPI Weights (2013) Sectors Weights Agriculture16.34 Agriculture, forestry16.01 Fishing 0.33 Industry83.66 Mining and quarrying 3.06 Manufacturing72.14 Electricity, gas and water 8.46 Toplam Total 100.00 10/1/201610 National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara – Turkey

11. Prices Timing for price observation is the average of 5th- 15th-25th day and in some cases average prices of the reference month. Prices in agriculture are selling prices of farmers to the marketing channels in each month between 1-25 days. Prices exclude product taxes (e.i. VAT, excise duties), trade and wholesale margins, transport charges invoiced separately. 10/1/201611 National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara – Turkey

12. Index Aggregation Formula Lowest level indices: Weighted arithmetic average of price relatives. Index Formula: Chained Laspeyres Weights and coverage are updated every year. 10/1/201612 I 0:t : index of current month I 0:t-1 : the last index (Dec.) of ref. year I dec(t-1):t(m) : Dec (t-1)=100 index of current month i : index level (product, class, etc.) National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara – Turkey

13. Reference Period Index reference year: 2003 Weight reference period : y-2  December of y-1 (e.g. 2010 for 2012) Price reference period : December of y-1 (e.g. December of 2011 for 2012) 10/1/201613 National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara – Turkey

14. 10/1/201614 Weights of enterprises y-2 14/30 Weights of products (Prodcom) y-2 Weights of NACE classes y-2 Weights of NACE sections and groups Prices updated from y-2 to December (y-1) Weight (W) Dec. (y-1) Base price (P 0 ) Dec. (y-1) Current price (P t ) (monthly price for the year y) Elementary aggr. Laspeyres Aggregation

15. 10/1/201615 Annual Update System Sending questionnairres to Regional Offices (RO) Defining new producers and products, and updating the current coveregae Prodcom data for product/enterprise coverage and weights Weights from administritive records or other statistics (electricity, gas,water, oil etc.) Collecting product informations from enterprises Weights of NACE Sectors and Groups from National Accounts 15/3 0 Industrial Production data for enterprise coverage and weights PPI RO send checked questionnaires to the TurkStat centre for data editing Introducing new items to the index and data entry program

16. Dissemination Results of the PPI are announced to the public in the 3 rd day or consequent working day of the month at 10:00 with a news bulletin. The data are disseminated simultaneously to all interested parties through a database and news bulletin. http://www.tuik.gov.tr/PreTablo.do?alt_id=1076 10/1/201616 National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara – Turkey

17. PPI Uses in Turkey Estimation of inflation (CPI) Deflator Rental aggrements Revaluation rates Determination of some tax rates Updating procurement of value contracts Other escalation procedures 10/1/201617 National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara – Turkey

18. Plans For 2014 Adoption of NACE Rev.2 and backcasting New base year Non-Domestic PPI calculation Domestic & Non-Domestic  Total PPI For 2015 PPI for services (SPPI) For long-term PPI for construction 10/1/201618 National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara – Turkey

19. Thank you for your attention 10/1/201619 National Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics in Turkey 10 September 2013 / Ankara - Turkey Regional Seminar on Developing A Program for the Implementation of the 2008 SNA and Supporting Statistics 11-13 September 2013 / Ankara – Turkey