|Unit||Index 2010=1000, NSA|
|Adjustments||Not Seasonally Adjusted|
The Capital Goods Price Index (CPGI) measures price changes for six groups of physical capital assets purchased by producers of goods and services. These are:
The price surveys of capital items for the CGPI cannot possibly cover all the items purchased by producers.
However, it is not necessary to survey the prices of all capital items that the producers purchase, as many related items are subject to similar price movements. The solution is to survey the prices of a selection of goods and services, which will representthe price movements of the much wider range of items that businesses purchase. The factors, which are to be taken into account when selecting items to be price surveyed, are the selected capital items should:
The prices used in the Capital Goods Price Index are collected by the Commodity Price Survey, which is a postal survey of about 3,000 respondents. Prices are generally collected each quarter and measure the price at the 15th of the middle month of the quarter.
The survey design is a purposive sample of outlets and items. Some prices used in the Capital Goods Price Index are obtained from various other publications. Most of the 'outlets' used within the Capital Goods Price Index are either manufacturers or wholesalers (eg cars). Some retailers also provide prices.
Data is revised when new data becomes available.
Usage and Limitations of the Data:
The Capital Goods Price Index has many uses. It can be used as a measure of price stability like the Consumer Price Index and Producers Price Index. The Asset type indexes can be used in cost escalation clauses for that type of asset. The Capital Goods Price Index can also be used for inflation accounting and in replacement value insurance policies.