The Industrial sector’s monthly Producer Price Index (PPI) for June, 2019 was estimated at 62.1 points showing a decrease by 2.4 percent, when compared to the previous month’s May 2019.
When compared on year-on-year (Y-o-Y) basis, PPI of June, 2019 showed a decrease of 11.8 percent compared to the PPI of June 2018, according to data released by the Planning and Statistics Authority (PSA).
The PPI of the Industrial sector for June 2019 was calculated at the base year prices of 2013. 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, 2019 showed a decrease by 2.9 percent when compared with PPI of May 2019, primarily due to the decrease of prices of “Crude petroleum and natural gas” with 2.9 percent. PPI of June 2019, when compared with June 2018, has seen a decrease of 13.2 percent.
In the Manufacturing sector, a decrease of 0.9 percent has been recorded in June 2019, when compared with the previous month’s Manufacturing index (May, 2019). The prices decrease are seen in: “Basic Chemicals” by 3.4 percent, “Cement and Other non-metallic products” by 0.9 percent, “Refined Petroleum products” by 0.8 percent, “Beverages” and “Other chemical products and fibres” by 0.5 percent for each, “Grain mill and Other products” by 0.1 percent.
However, the increasing prices are noticed in: “Rubber and Plastics products” by1.6 percent, “Basic Metals” by 1.1 percent, and “Paper and Paper products” by 1.0 percent. No change is noticed in prices of “Juices” and “Dairy products”.
Comparing with the index of counterpart in the previous year (June 2018), “Manufacturing” PPI of June, 2019 showed a decrease of 8.7 percent. The major groups which explain this price fall are: “Basic Chemicals” by 9.8 percent, “Refined Petroleum products” by 9.3 percent, “Basic Metals” by 7.5 percent, and “Cement and Other non-metallic products” by 5.4 percent.
However, prices increased in “Rubber and Plastics products” by 5.3 percent, followed by “Other chemical products and fibers” by 4.8 percent, “Juices” by 3.3 percent, “Dairy products” by 3.1 percent, “Paper and Paper Products” by 2.6 percent, “Beverages” by 2.3 percent , and “Grain mill and Other products” by 0.1 percent.
In the Electricity and Water sector, the PPI of this group showed a decrease of 4.6 percent compared to May 2019, resulting from the decreasing price in “Electricity” by 6.3 percent, and “Water” by 2.5 percent. When compared the PPI of June, 2019, to the PPI of June, 2018 Y-o-Y, showed a decrease of 1.4 percent, affected by prices fall in “Water” by 7.2 percent, and a rise in “Electricity” by 3.9 percent.
