Producer Price Indices Rebased Report 2020

The Kenya National Bureau of Statistics (KNBS) has been monitoring the changes in production prices every quarter through the quarterly Producer Price Index (PPI). The PPI has been used an indicator of inflationary trends from the producer’s perspective, a deflator for industrial statistics, for economic monitoring and comparison among others. Based on the wide range of uses, it is important that the KNBS continues to compile the PPI which is more accurate and reliable. The PPI has been produced since 2012 with the weights derived from the 2009 data, which was the reference year for the Census of Industrial Production (CIP) 2010. Over time, the production patterns and the industrial structure changes and there is need to rebase the index to reflect current status. Rebasing PPI is also in line with the internationally accepted best practices for reviewing indices after a certain period of time. This re-based Producer Price Index (PPI) is derived from the results of the Census of Industrial Production (CIP) 2018 carried out by Kenya National Bureau of Statistics (KNBS). Data collection was done across all the 47 counties for a period of eighty (80) days from July to October. The CIP 2018 provided updated industrial statistics with a reference year of 2017 which updated the baseline data collected in 2009. This updated data generated the weights used in the development of updated Producer Price Indices (PPI). This report gives the key highlights of the structure of the rebased PPI, the methodology employed as well as the results.