Ministry of Development Planning and Statistics (MDPS) has released the Monthly Producer Price Index (PPI) of the Industrial sector for June 2018 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, 2018 showed an increase of 3.6% when compared with PPI of May 2018, primarily due to the increase of prices of “Crude petroleum and natural gas” with 3.6%. PPI of June 2018, when compared with its counterpart in previous year (June 2017), there has been a considerable increase of 41.1%. Graph (1) showed the monthly movement of “Mining” index during June 2017 and June 2018, while Graph (2) showed the monthly rate of change in General PPI and Mining.
Manufacturing:
An increase of 4.5% has been recorded in June, 2018, when compared with the previous month’s Manufacturing index (May,2018). The prices increase are seen in: “Refined Petroleum Products " by 6.5%, “Other chemical products and fibers" by 4.5%, “Basic Chemicals” by 1.9%, “Rubber and Plastics products” by 1.3%, “Paper and Paper products” by 1.0%, “Cement and Other non-metallic products” by 0.6%. However, the decreasing prices are noticed in “Basic Metals” by 1.4%,“Grain mill and Other products” by 0.4%, “Dairy Products” by 0.3%, and “Beverages” by 0.1%. No change noticed in “Juices”.
Comparing with the index of counterpart in the previous year (June 2017), “Manufacturing” PPI of June, 2018 showed a rise of 25.8%. The major groups which explain this price increase are
“Refined Petroleum products” by 35.7%, followed by “Basic Metals” by 14.6%, “Dairy products” by 13.0%, “Basic Chemicals” and “Other chemical products and fibers” by 12.9% each, “Paper and Paper Products” by 11.3%, “Rubber and Plastics products” by 7.6%, and “Juices” by 2.5%.
However, prices fall also noticed in "Cement and Other non-metallic products” by 5.0%, and “Beverages” by 2.7%, and" Grain mill and Other products " by 0.3%.
Graph (3) shows the graphical presentation of “Manufacturing” index during June 2017 to June 2018.
Electricity and Water:
The PPI of this group showed an increase of 3.2% compared to May 2018, resulting from an increasing price in “Water” by 17.2%, and a decreasing in “Electricity” by 7.1%. When compared the PPI of June, 2018, to the PPI of June, 2017 [Y-o-Y], showed a decrease of 2.7%, affected by prices fall in “Water” by 8.2%, and a rise in “Electricity” by 3.1%.
Overall Index (PPI of Industrial sector):
The PPI for June, 2018 is estimated at 70.4 points showing an increase by 4.0%, when compared to the previous month’s May 2018. On [Y-o-Y] basis, PPI of June, 2018 showed a rise of 35.6% when compared to the PPI of June 2017.
Graph (4) shows the monthly of PPI and rate of change during June 2017 to June 2018, also table (1) includes the PPI of June 2018 with monthly and yearly comparisons.
