PCBS: Increase in Wholesale Price Index (WPI) during 2020 third quarter

 PNN/ Ramallah/ 

Palestinian Central Bureau of Statistics (PCBS) said in its latest report that the overall WPI in Palestine with its base year (2007=100) reached 127.61 in the Third quarter 2020, which Recorded a Sharp Increase of 2.91% compared with the Second quarter 2020.

The report said that the WPI for local products (2007=100) reached 134.48 in the Third quarter 2020, which indicates a sharp increase of 4.54% compared with the Second quarter 2020. It added that WPI for imported products (2007=100) reached 120.76 in the Third quarter 2020, which indicates an increase of 0.63% compared with the Second quarter 2020. Meanwhile, WPI for the Third Quarter of 2020 increased due to the increase in the activities of Agriculture by 8.03%, the activities of Mining and Quarrying by 5.93%, the activities of Fishing by 4.86%, and the activities of Manufacturing by 0.47%.

The report also noted that as a result of CORONAVIRUS (COVID-19) outbreak, and the implemented measures to limit its spread, the data collection process for Wholesale Price Index has been replaced with data collection via phone and websites for all sale outlets in all of the Palestinian Governorates instead of collecting data face to face from the field.

The number of sale outlets, from which Wholesale Prices are collected in Palestine, reached 430 outlets in the third quarter 2020. Thus and in light of the temporary closure of many outlets due to applying the Palestinian emergency plan, the completion of data collection process is as follows:

Region Number of Collected Outlets Number of Non-Collected Outlets Percentage of Collected Outlets
Palestine 392 38 91%

The number of price observations collected to compile the Palestinian Wholesale Price index is 3,543 price observations; where 94% was collected in the third quarter 2020. Hence, the observations collected are as follows:

Region Number of Actual Collected Observations Estimated Number of Observations Percentage of Actual Collected Observation
Palestine 3,330 213 94%

International recommendations were followed in estimating the missing data, which are mentioned in Price Index guide. Moreover, the (Group Relative Method) is one of the best methods used to estimate the missing data, which is the process of estimating the prices based on the change in the prices of the remaining sources for the same category. Accordingly and in case of the closure of an entire source on a temporary basis, all the prices of that source are estimated based on the change in the prices of the sources that share the same items which are collected from that source.

The estimate is also used at the (Next Level Up in Aggregation) in case of the disappearance of the index for a whole sub-group or a higher group reaching up to the major groups that constitute the index.

   [1]The resale (sale without transformation) of new and used goods to retailers, industrial, commercial, institutional or professional users, to other wholesalers, or to those acting as agents or brokers in buying merchandise for, or selling merchandise to such persons or companies.  The wholesale price includes VAT and any transport charges.