Monthly Producer Price Index of Industrial Sector - September 2016

 (Base year 2013=100)

• General PPI of September 2016, decreased by 1.7 % when compared with August,2016.
• PPI of Crude Petroleum and Natural gas decreased by 2.1%, when compared with August,2016.
• PPI of Manufacturing decrease by 0.5%, when compared with August,2016.

Ministry of Development Planning and Statistics (MDPS) has released the Monthly Producer Price Index (PPI) of the Industrial sector for September 2016 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 September, 2016 shows a decreased  of 2.1% when compared with PPI of August 2016, primarily due to the decrease in prices of “Crude petroleum and natural gas”. PPI of September  2016, when compared with its counterpart in the previous year, there has been a significant fall of 20.0%. Figure (1) shows the movement of “Mining” index during September 2015 and September 2016.

Manufacturing

A decrease of 0.5% has been recorded in September, 2016, when compared with the previous month’s Manufacturing index during this year. The prices decrease are seen in: “Basic Metals” by 8.2%, “Basic Chemicals” by 5.9%, “Dairy products” by 0.5%,  “Cement and other Non-metallic products” by 0.4%, “Beverages” by 0.3%, “Grain Mill products”  by 0.2%.  However, the increasing prices are noticed in “Rubber and Plastics products” by 6.4%, "Other Chemical products” by 5.7%,  “Juices” by 4.1% and  “Refined Petroleum Products” by 2.9%.  No change noticed in “Paper and Paper Products”.

Comparing with the index of counterpart in the previous year (September 2015), “Manufacturing” PPI of September, 2016 showed a sharp decline of 9.5%. The major groups which explain this price fall are “Basic Chemicals” by 17.7%,  ”Basic Metals” by 10.8%,  “Refined Petroleum Products” by 7.7%, “Dairy products” by 1.8%, “Grain Product” by 1.0%.  However, prices rise are also noticed in “Juices” by 19.6%, “Other Chemical products” by 16.1%,  and “Rubber and Plastic product” by 10.2%, “Beverages” by 3.2%. No change noticed in “Paper and Paper Products”  and “Cement and other Non-metallic products”.

Figure (2) shows the graphical presentation of “Manufacturing” index during September 2015 to September 2016.

Electricity and water

The PPI of this group showed a decrease of 1.4% compared to August 2016, resulting from the decreasing price seen in  “Electricity” by 5.9%, and decreasing  seen  in  “Water” by 4.1%, and  When compared the PPI of September, 2016, to the PPI of September, 2015, showed an increase [Y-o-Y] of 4.5%, resulting from the price rise in “Water” by 27.2%, and fall in “Electricity” by 9.9%.
Overall Index (PPI of Industrial sector)
The PPI for September, 2016 is estimated at 46.5 points showing a decrease of 1.7% compared to the previous month’s August 2016, due to the decrease  has been noticed in all the three sectors (“Mining”, “Electricity and water” and  “Manufacturing”). On [Y-o-Y] basis, PPI of September, 2016 shows a steep fall of 16.7% when compared to the PPI of September 2015.

More details on monthly/annual comparison of indices are available in Table (1) and figures (3) and (4) of the Press Release. Further detailed data and indices would be available on the Ministry’s website, www.mdps.gov.qa  and Qatar Information Exchange, www.qalm.gov.qa .

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