Ministry of Development Planning and Statistics (MDPS) has released the Monthly Producer Price Index (PPI) of the Industrial sector for September 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 September, 2017 showed an increase of 5.1% when compared with PPI of August 2017, primarily due to the increase of prices of “Crude petroleum and natural gas” with 5.2%. PPI of September 2017, when compared with its counterpart in the previous year, there has been a considerable increase of 18.3%. Graph (1) showed the monthly movement of “Mining” index during September 2016 and September 2017 .
Manufacturing
An increase of 5.0% has been recorded in September, 2017, when compared with the previous month’s Manufacturing index during this year. The prices increase are seen in: “Refined Petroleum products " by 6.4%, “Basic Chemicals” by 4.6%,“Basic Metals" by 1.8%, “Paper and Paper Products " by 1.5%, “Grain mill and Other products " by 0.1%. However, the decreasing prices are noticed in "Juices" by 3.7%, “Dairy products” and “Beverages” by 1.4% each, “Rubber and Plastics products” by 0.9%, and "Cement and Other non-metallic products" by 0.5%. No monthly change noticed in “Other chemical products and fibers” .
Comparing with the index of counterpart in the previous year (September 2016), “Manufacturing” PPI of September, 2017 showed a rise of 17.2%. The major groups which explain this price increase are “Refined Petroleum Products” by 23.2%, “Basic Metals” by 12.7%,“Basic Chemicals” by 11.5%, and “Other chemical products and fibers” by 10.5%, “Grain mill and Other Products” by 1.1%. However, prices fall also noticed in “Rubber and Plastics products” by 5.0%, , "Cement and Other non-metallic products" by 3.7%, “Beverages” by 2.5%, "Paper and Paper Products” by 2.2%, “Juices” by 1.9% .
Electricity and Water
The PPI of this group showed a decrease of 1.9% compared to August 2017, resulting from a decreasing price seen in “Electricity” by 2.4%, and “Water” by 1.1%.
When compared the PPI of September, 2017, to the PPI of September, 2016, showed an increase [Y-o-Y] of 4.3%, resulting from a rise in “Water” by 12.2% and a fall in “Electricity” by 2.8% .
Overall Index (PPI of Industrial sector)
The PPI for September, 2017 is estimated at 54.8 points showing an increase of 5.0% compared to the previous month’s August 2017. On [Y-o-Y] basis, PPI of September, 2017 showed a rise of 17.8% when compared to the PPI of September 2016.
