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. Prepared by Stats NZ, a New Zealand government bureau, CGPI indicates changes in the cost of six types of physical capital assets: Residential buildings, including houses and apartment complexes Nonresidential buildings including factories, office buildings, warehouses, and shopping malls Transportation equipment including commercial road and rail vehicles Land improvement costs including land clearing, reclamation, irrigation, and drainage Plant machinery and equipment Other types of construction including infrastructure projects CGPI is a constituent of New Zealand's broader Business Price Index along with indices related to 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 after being wrapped into the Business Price Index, which is a broader indicator of price changes in the economy. There is no corresponding index in the U.S. with New Zealand's Capital Goods Price Index (CGPI), though the Producer Price Index (PPI) captures two similar components for capital goods: materials and components for construction and materials and components for manufacturing. CGPI is a constituent of New Zealand's broader Business Price Index along with indices related to producer prices, farm prices, salaries and wages, and consumer goods and services prices. The Capital Goods Price Index (CGPI) is part of the country's overall Business Price Index and one of the main indices for inflation measurement in the economy, which helps to guide monetary policy.
More in Economy
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 used by companies and the New Zealand government to produce other goods.
The Capital Goods Price Index (CGPI) is part of the country's overall Business Price Index and one of the main indices for inflation measurement in the economy, which helps to guide monetary policy. The CGPI is produced every quarter.
Understanding the Capital Goods Price Index (CGPI)
Prepared by Stats NZ, a New Zealand government bureau, CGPI indicates changes in the cost of six types of physical capital assets:
CGPI is a constituent of New Zealand's broader Business Price Index along with indices related to 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 after being wrapped into the Business Price Index, which is a broader indicator of price changes in the economy. However, CGPI is still broken down in a subsection of the Business Price Index.
The CGPI and Producer Prices
There is no direct corresponding index in the U.S. with New Zealand's Capital Goods Price Index (CGPI). Instead, the Producer Price Index (PPI) captures two similar components for capital goods: materials and components for construction and materials and components for manufacturing.
CGPI publication was discontinued in 2015 as a single headline number after being wrapped into the Business Price Index. However, CGPI is still broken down in a subsection of the Business Price Index.
Producer price indexes measure price changers from the sellers' or producers' point of view. In other words, this index tracks change to the cost of production. Conversely, a consumer price index (CPI) measures cost changes from the viewpoint of the consumer.
Related terms:
Capital Goods Sector
The capital goods sector refers to a grouping of publicly-traded companies that make machinery used to manufacture goods and products. read more
What Is a Capital Asset?
A capital asset is an asset with a useful life longer than a year that is not intended for sale in the regular course of the business's operation. read more
The Conference Board (CB)
The Conference Board (CB) is a not-for-profit research organization which distributes vital economic information to its peer-to-peer business members. read more
Consumer Price Index (CPI)
The Consumer Price Index (CPI) measures the average change in prices over time that consumers pay for a basket of goods and services. read more
Depression
An economic depression is a steep and sustained drop in economic activity featuring high unemployment and negative GDP growth. read more
Factors of Production
Factors of production are the inputs needed for the creation of a good or service. The factors of production include land, labor, entrepreneurship, and capital. read more
Industrial Goods Sector
The industrial goods sector encompasses stocks that relate to producing goods used in construction and manufacturing. read more
Infrastructure
Infrastructure refers broadly to the basic physical systems of a business, region, or nation. Examples include roads, sewer systems, power lines, and ports. read more
Producer Price Index (PPI)
The producer price index (PPI) is a family of indexes that gauges the average fluctuation in selling prices received by domestic producers over time. read more