- General PPI of July decreased by 1.5 % when compared with the previous month's.
- PPI of Crude Petroleum and Natural gas decreased by 1.5 % when compared with the previous month's.
- PPI of Manufacturing decrease by 1.8 % when compared with the previous month’s.
Ministry of Development Planning and Statistics (MDPS) have released the Monthly Producer Price Index (PPI) of the Industrial sector for July 2016 with the base year 2013. Producer price index covers goods relating to “Mining” (weight: 72.7%), “Electricity & Water” (weight: 0.5%) and “Manufacturing” (weight: 26.8%).
Mining
The PPI of July, 2016 shows a decrease of 1.5% when compared with PPI of June 2016, primarily due to the decreased in prices of “Crude petroleum and natural gas”. PPI of July 2016, when compared with its counterpart in the previous year, there has been a significant fall of 31.1%. Figure (1) shows the movement of “Mining” index during July 2015 and July 2016.
Manufacturing
A decrease of 1.8% has been observed in July, 2016, when compared with the previous month’s Manufacturing index during this year. The increasing prices are noticed in ”Basic Metals” by 7.1%, “Juices” by 3.4%,"Other Chemical products” by 3.5%,“Dairy products” by 2.2%,“Beverages” by 0.3%,and “Rubber and Plastics products” by 1.9%.
However, the prices decrease are seen in: “Refined Petroleum Products” by 3.8%,“Cement and other Non-metallic products” by 1.7%,, “Basic Chemicals” by 1.6%,and “Grain Mill products” by 0.1%. No change noticed in Paper and Paper Products.
Comparing with the index of counterpart in the previous year (July 2015), “Manufacturing” PPI of July, 2016 showed a sharp decline of 15.7%. The major groups which explain this price fall are “Basic Chemicals” by 19.9%, “Refined Petroleum Products” by 17.7%, ”Basic Metals” by 7.6%, “Other Chemical products” by 1.9%, “Dairy products” by 0.8%, “Grain Product” by 0.1%. However, prices rise are also noticed in “Juices” by 11.6%, “Cement and other Non-metallic products” by 3.4%,“Beverages” by 3.1%, “Rubber and Plastic product” by 3.7%. No change noticed in Paper and Paper Products.
Figure (2) shows the graphical presentation of “Manufacturing” index during July 2015 to July 2016
Electricity and water
The PPI of this group showed an increase of 1.4% compared to June 2016, resulting from the falling price seen in “Electricity” by 2.9% and rise in “Water” by 7.6%. When compared the PPI of July, 2016, to the PPI of July, 2015, showed a decrease [Y-o-Y] of 0.4%, resulting from the price fall in “Electricity” by 5.6% and rise in “Water” by 7.2%.
Overall Index (PPI of Industrial sector)
The PPI for July, 2016 is estimated at 46.0 points showing a decrease of 1.5% compared to the previous month’s June 2016, due to the decreasing that have been noticed in the “Mining” (which includes crude oil and natural gas), “Manufacturing”, and an increase in “Electricity and water”. On [Y-o-Y] basis, PPI of July, 2016 shows a steep fall of 26% when compared to the PPI of July 2015.
More details on monthly/annual comparison of indices are available in Table (1) and figures (3) and (4) of the Press Release.
