PPI of Manufacturing decreased by 4.7%, when compared with previous month.
Ministry of Development Planning and Statistics (MDPS) has released the Monthly Producer Price Index (PPI) of the Industrial sector for June 2017 with the base year 2013. Producer price index covers goods relating to “Mining” (weight: 72.7%), “Manufacturing” (weight: 26.8%), and “Electricity & Water” (weight: 0.5%).
Mining
The PPI of June, 2017 showed a decrease of 3.7% when compared with PPI of May 2017, primarily due to the decrease of prices of “Crude petroleum and natural gas” with the same percentage. PPI of June 2017, when compared with its counterpart in the previous year, there has been a considerable increase of 14.8%. Figure (1) showed the monthly movement of “Mining” index during June 2016 and June 2017, while figure (2) showed the monthly rate of change in General PPI and Mining.
Manufacturing
A decrease of 4.7% has been recorded in June, 2017, when compared with the previous month’s Manufacturing index during this year. The prices decrease are seen in: “Refined Petroleum Products" by 6.1%, “Rubber and Plastic products” by 5.8%, “Basic Chemicals" by 3.6% and " Cement and other Non-metallic products” by 2.0%. However, the increasing prices are noticed in " Other chemical products and fibers" by 4.5%, “Beverages” by 1.0%, “Basic Metals” by 0.6%, “Grain mill and Other Products” by 0.4%, and “Dairy products” by 0.3%. No monthly change noticed in “Juices” and Paper and Paper Products”.
Comparing with the index of counterpart in the previous year (June 2016), “Manufacturing” PPI of June, 2017 showed a rise of 4.7%. The major groups which explain this price increase are “Other chemical products and fibers” by 18.1%, “Juices” by 9.6%, “Refined Petroleum Products” by 6.7%, “Basic Metals” by 5.2%, “Basic Chemicals” by 1.5%, “Dairy products” by 0.6% and “Grain mill and Other Products” by 0.2%. No change in Beverages.
However, prices fall are also noticed in "Cement and Other non-metallic products" by 4.0%, “Paper and Paper Products” by 2.7%, " Rubber and Plastic products " by 1.2%.
Figure (3) shows the graphical presentation of “Manufacturing” index during June 2016 to June 2017.
Electricity and Water
The PPI of this group showed an increase of 5.5% compared to May 2017, resulting from an increasing price seen in “Water” by 16.7% and a decreasing price in “Electricity” by 4.0%.
When compared the PPI of June, 2017, to the PPI of June, 2016, showed also an increase [Y-o-Y] of 9.6%, resulting from the rise in “Water” by 22.8% and fall in “Electricity” by 1.4% .
Overall Index (PPI of Industrial sector)
The PPI for June, 2017 is estimated at 51.9 points showing a decrease of 4.1% compared to the previous month’s May 2017. On [Y-o-Y] basis, PPI of June, 2017 showed a rise of 11.1% when compared to the PPI of June 2016. Figure (4) shows the monthly of PPI and rate of change during June 2016 to June 2017, also table (1) includes the PPI of June 2017 with monthly and yearly comparisons.
