Producer Price Index falls in June

 09 Aug 2017 - 1:35

The Peninsula

The Monthly Producer Price Index (PPI) for June, 2017 was estimated at 51.9 points, showing a decrease of 4.1 percent compared to the previous month’s (May 2017).
However, when compared on yearly basis (Y-o-Y), the PPI of June, showed a rise of 11.1 percent against the PPI of June 2016, data released by the Ministry of Development Planning and Statistics show.
The PPI of Manufacturing sector in June 2017 decreased by 4.7 percent, when compared with previous month.
Producer Price Index covers goods relating to “Mining” (weight: 72.7 percent), “Manufacturing” (weight: 26.8 percent), and “Electricity & Water” (weight: 0.5 percent).
The Mining sector PPI of June, 2017 showed a decrease of 3.7 percent when compared with PPI of May 2017, primarily due to the decrease of prices of “Crude petroleum and natural gas” with the same percentage. PPI of June 2017, when compared with its counterpart in the previous year, there has been a considerable increase of 14.8 percent.
A decrease of 4.7 percent has been recorded in the Manufacturing sector PPI in June, 2017, when compared with the previous month’s Manufacturing index during this year. The prices decrease are seen in: “Refined Petroleum Products” by 6.1 percent, “Rubber and Plastic products” by 5.8 percent, “Basic Chemicals” by 3.6 percent and “Cement and other Non-metallic products” by 2.0 percent.  However, the increasing prices are noticed in “Other chemical products and fibers” by 4.5 percent, “Beverages” by 1.0 percent, “Basic Metals” by 0.6 percent, “Grain mill and Other Products” by 0.4 percent, and “Dairy products” by 0.3 percent. No monthly change noticed in “Juices” and Paper and Paper Products”. Comparing with the index of counterpart in the previous year (June 2016), “Manufacturing” PPI of June, 2017 showed a rise of 4.7 percent.
 The major groups which explain this price increase are “Other chemical products and fibers” by 18.1 percent, “Juices” by 9.6 percent, “Refined Petroleum Products” by 6.7 percent, “Basic Metals” by 5.2 percent, “Basic Chemicals” by 1.5 percent, “Dairy products” by 0.6 percent and “Grain mill and Other Products” by 0.2 percent. No change in Beverages. However, prices fall are also noticed in “Cement and Other non-metallic products” by 4.0 percent, “Paper and Paper Products” by 2.7 percent, “Rubber and Plastic products “ by 1.2 percent.
The PPI of Electricity and Water showed an increase of 5.5 percent compared to May 2017, resulting from an increasing price seen in “Water” by 16.7 percent and a decreasing price in “Electricity” by 4.0 percent.