Capital Goods Price Index - Explained
What is the Capital Goods Price Index?
If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
What is the Capital Goods Price Index (CGPI)?
The Capital Goods Price Index (CGPI) is a statistic that monitors changes in the prices of fixed assets, as well as how changes in income affect changes in prices of these assets. CGPI is peculiar to New Zealand and it covers six types of fixed assets as used across the nation. The capital goods price index is released every quarter to reflect the difference in the prices of assets from one quarter to another. This index is used by companies in New Zealand and the government.
Back to: ECONOMIC ANALYSIS & MONETARY POLICY
What does the Capital Goods Price Index Measure?
There are six types of fixed assets that the capital goods price index measures, they are;
- Residential buildings such as commercial buildings, houses, and complexes meant for human habitation.
- Non-residential buildings such as warehouses, shopping outlets, malls, factories and others.
- Transportation equipment such as trucks and vehicles
- Land improvement which includes costs for irrigation, clearing and other activities meant to improve the land.
- Plant machinery and factory equipment
- Infrastructure project
The capital goods price index is an important metric when measuring inflation in New Zealand, this index is also applied when making monetary policy for the effective and efficient running of the economy. CGPI was published quarterly by the government of New Zealand before it was discontinued in 2015. CGPI was however included in a broader indicator of price changes called the Corporate Price Index (CPI). Other countries have indexes similar to CGPI used to measure changes in the prices of fixed assets, however, there is no direct equivalent for CGPI, not even in the United States. CGPI is specific to New Zealand.
- Core Inflation
- Cost Push Inflation
- Demand Pull Inflation
- Wage Push Inflation
- Inflation Spiral (Wage-Price Spiral)
- Consumer Price Index
- Buying Power Index
- Breakfast Index
- Capital Goods Price Index
- Farm (Agricultural) Price Index
- Harmonized Index of Consumer Prices
- Repeated Sales Method (Real Estate)
- Pigou Effect
- Hyperinflation (Economics)
- Inflation and Redistribution of Purchasing Power
- Inflation Blurs Price Signals
- Inflation Affects Long-Term Planning
- What are the Benefits of Inflation?
- Cost of Living Allowance
- Adjustable Rate Mortgage