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Annual Change +2.7%
The Producer Price Index for Construction for the fourth quarter of 2023 stood at 138.29 points (based on 2015=100.00), a marginal increase of 0.8% compared to the third quarter of 2023. Compared to the corresponding quarter of last year, the index increased by 2.7%.
By project type, there was an increase of 1.4% in buildings and 6.9% in civil engineering projects in the fourth quarter of 2023 compared to the corresponding quarter of 2022.
For the period January - December 2023, the overall index recorded an increase of 4.8% compared to the corresponding period of 2022. The index recorded an increase of 1.6% for buildings and 16.6% for civil engineering projects.
Methodological Information
Purpose
The Quarterly Producer Price Index measures changes in unit prices charged to customers of construction projects. It therefore shows the change in the total cost of projects on the client's side, including costs such as that of materials, labor, fuel, transportation and others, as well as contractors' profit. It can be taken as an indication of the level of inflation in Construction relative to a particular reference year, the base year.
Data Collection
To calculate the index and for each reference quarter, unit values are collected for a broad list of basic construction activities necessary from the start to completion of projects such as: single-family houses, residential apartment buildings, non-residential buildings, and civil engineering projects (i.e., projects involving open spaces and generally anything not considered a building). The data is obtained from a sample of firms active in the various stages of construction of the projects under consideration, using all possible means (telephone, fax, e-mail) according to the preference of each firm.
Method of calculation
The basic construction works for which prices are charged are grouped appropriately by type of project. The various tasks are weighted by factors which are derived from the cost of each task in relation to the project type. The total price index is obtained by aggregating the indices of the individual project types using as a weighting factor their turnover in relation to the total construction sector. The index produced for each project type is also used in the deflation stage to calculate the Production Index for Construction.
The Producer Price Index has 2015 as its base year, i.e. it shows the change in unit prices relative to the average of the corresponding prices in 2015. In the base year, the average of the four quarters of the price index is 100.0. For example, if the price index for a given quarter is 101.5, this means that prices increased by 1.5% compared to the average price in 2015.
For more information, interested parties can visit the Statistical Service Portal, under Construction, CYSTAT-DB (Database), Predefined Tables (Excel) or contact Mrs. Evi Kalogirou Demetriou (tel.: 22602168, e-mail: ekalogirou@cystat.mof.gov.cy).
The Predefined Tables in Excel format include data up to the fourth quarter of 2022. For the first quarter of 2023 and thereafter, the update is done only in the CYSTAT-DB Database.
(GA/EATH)
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