Capital Goods Price Index (CGPI)
What Is Capital Goods Price Index (CGPI)?
Capital Goods Price Index (CGPI) is an official statistical monitor of changes in fixed capital asset prices in New Zealand. The index tracks the change in costs for capital assets, which are utilized by companies and the New Zealand government to create different goods.
The Capital Goods Price Index (CGPI) is part of the country's overall Business Price Index and one of the primary indices for inflation measurement in the economy, which assists with directing monetary policy. The CGPI is delivered each quarter.
Understanding the Capital Goods Price Index (CGPI)
Prepared by Stats NZ, a New Zealand government bureau, CGPI shows changes in the cost of six types of physical capital assets:
- Residential structures, including houses and apartment edifices
- Nonresidential structures including production lines, office structures, warehouses, and shopping centers
- Transportation equipment including commercial road and rail vehicles
- Land improvement costs including land clearing, reclamation, water system, and seepage
- Plant machinery and equipment
- Different types of construction including infrastructure projects
CGPI is a constituent of New Zealand's broader Business Price Index alongside indices connected with producer prices, farm prices, salaries and wages, and consumer goods and services prices.
Capital Goods Price Index (CGPI) publication was discontinued in 2015 as a single headline number subsequent to being wrapped into the Business Price Index, which is a broader indicator of price changes in the economy. Be that as it may, CGPI is as yet broken down in a subsection of the Business Price Index.
The CGPI and Producer Prices
There is no direct comparing index in the U.S. with New Zealand's Capital Goods Price Index (CGPI). All things being equal, the Producer Price Index (PPI) catches two comparative parts for capital goods: materials and parts for construction and materials and parts for manufacturing.
CGPI publication was discontinued in 2015 as a single headline number in the wake of being wrapped into the Business Price Index. In any case, CGPI is as yet broken down in a subsection of the Business Price Index.
Producer price indexes measure price changers from the merchants' or alternately producers' point of view. At the end of the day, this index tracks change to the cost of production. On the other hand, a consumer price index (CPI) measures cost changes from the viewpoint of the consumer.
Features
- CGPI is a constituent of New Zealand's broader Business Price Index alongside indices connected with producer prices, farm prices, salaries and wages, and consumer goods and services prices.
- The CGPI gauges the overall price change in physical assets that the useful sector obtains or fabricates.
- The major asset bunches are structures, both residential and non-residential; civil construction; land enhancements; and plant, machinery, and equipment.
- There is no relating index in the U.S. with New Zealand's Capital Goods Price Index (CGPI), however the Producer Price Index (PPI) catches two comparative parts for capital goods: materials and parts for construction and materials and parts for manufacturing.
- The Capital Goods Price Index (CGPI) is a measure of producer price inflation for New Zealand's economy.
