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•  General PPI of May 2017, decreased by 0.6 % when compared with previous month ( M-O-M).
•  General PPI of May 2017, increased by 20.5% when compared with May 2016( Y-O-Y).
•  PPI of Crude Petroleum and Natural gas increased by 0.4%, comparing with previous month.
•  PPI of Manufacturing decreased by 2.6%, when compared with previous month.
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Ministry of Development Planning and Statistics (MDPS) has released the Monthly Producer Price Index (PPI) of the Industrial sector for May 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 May, 2017 showed an increase of 0.4% when compared with PPI of May 2017, primarily due to the increase of prices of “Crude petroleum and natural gas” with the same percentage. PPI of May 2017, when compared with its counterpart in the previous year, there has been a considerable increase of 26.3%. Figure (1) showed the monthly movement of “Mining” index during May 2016 and May2017, while figure (2) showed the  monthly rate of change in General PPI and Mining.

Manufacturing
A decrease of 2.6% has been recorded in May, 2017, when compared with the previous month’s Manufacturing index during this year. The prices decrease are seen in: “Basic Chemicals" by 4.4%, “Refined Petroleum Products” by 2.9%, “Dairy Products" by 0.9% and "Beverages” by 0.6%. However, the increasing prices are noticed in "Juices", by 2.7%, “Rubber and Plastic products” by 1.7%, “Grain mill and Other products” by 1.4%, “Cement and other Non-metallic products” by 0.6%, “Paper and Paper Products” by 0.5%, “Basic Metals” by 0.4%, and "Other chemical products and fibers" by 0.1%.

Comparing with the index of counterpart in the previous year (May 2016), “Manufacturing” PPI of May, 2017 showed a rise of 11.3%. The major groups which explain this price increase are “Juices” by 17.4%, “Refined Petroleum products” by 16.3%, “Basic Metals” by 13.6%, “Other chemical products and fibers” by 13.5%, “Rubber and Plastic products” by 2.4%,  “Basic Chemicals” by 1.5% and “Grain mill and Other Products” by 0.5%. No change in  Dairy Products.

However, prices fall are also noticed in "Cement and Other non-metallic products" by 3.1%, “Paper and Paper Products” by 2.7%, "Beverages" by 1.3%.
Figure (3) shows the graphical presentation of “Manufacturing” index during May 2016 to May 2017.

Electricity and Water
The PPI of this group showed an increase of 6.2% compared to April 2017, resulting from an increasing price seen in “Water” by 18.5% and a decreasing price in “Electricity” by 2.5%,.

When compared the PPI of May, 2017, to the PPI of May, 2016, showed also an increase   [Y-o-Y] of 5.0%, resulting from the rise in “Water” by 19.9% and fall in  “Electricity” by 5.0% .

Overall Index (PPI of Industrial sector)
The PPI for May, 2017 is estimated at 54.1 points showing a decrease of 0.6% compared to the previous month’s April 2017. Due to the increase has been noticed in  “Mining” and  “Electricity & water”, and a  decrease  in “Manufacturing”.  On [Y-o-Y] basis, PPI of May, 2017 showed a rise of 20.5% when compared to the PPI of May 2016. Figure (4) shows the monthly of PPI and rate of change during May 2016 to May 2017, also table (1) includes the PPI of May 2017 with monthly and yearly comparisons.

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