The overall monthly Producer Price Index of Industrial Sector Index (PPI) for April,2020 was estimated at 35.9 points showing a decrease of 27.0 percent compared to the previous month’s PPI (March 2020).
When compared on y-o-y basis, PPI of April, 2020 showed a decrease of 45.2 percent compared to the PPI of corresponding month last year (April 2019), according to data released by the Planning and Statistics Authority (PSA).
The PPI of Crude Petroleum and Natural Gas production decreased by 32.6 percent, comparing with previous month. The index (PPI) covers goods relating to “Mining” (weight: 72.7 percent ), “Manufacturing” (weight: 26.8 percent ), and “Electricity & Water” (weight: 0.5 percent). The April PPI of Mining sector showed a decrease by 32.3 percent when compared with PPI of March 2019, primarily due to the price decline of “Crude petroleum and natural gas” by 32.6.
When compared with its counterpart in previous year (April 2019), there was a decrease on this sector by 51.5 percent . In the Manufacturing sector PPI, a decrease of 18 percent has been recorded in April 2020, when compared with the previous month’s Manufacturing index (March, 2020). The decrease in prices in varying degrees were seen in: “Refined Petroleum products” by 25.3 percent , followed by “Basic Chemicals” by 8.0 percent , “Basic Metals” by 5.0 percent , “Cement and Other non-metallic products” by 2.9 percent , “Grain mill and Other products” by 0.4 percent.
However, the increasing prices are noticed in “Juices” by 2.6 percent , “Beverages” by 0.2 percent , “Dairy products”, and “Rubber and Plastics products” by 0.1 percent each. No changes noticed in “Paper and Paper products” and “Other chemical products and fibers”. Comparing with the index with the previous year (April 2019), “Manufacturing” PPI of April 2020 showed a decrease of 32.5 percent . The major groups which explain this price fall were: “Refined Petroleum products” by 41.6 percent , followed by “Basic chemicals” by 24.0 percent , “Basic Metals” by 8.8 percent , “Rubber and Plastics products” by 3.4 percent , “Cement and Other nonmetallic products” 2.1 percent , and “Other chemical products and fibers” by 1.5 percent.
However, prices increased in and “Juices” by 5.3 percent , followed by “Paper and Paper Products” by 3.0 percent , “Grain mill and Other products” are decreased by 0.8 percent , and “Dairy products” by 0.4 percent . No change noticed in “Beverages”. The PPI of this group showed a decrease of 7.6 percent compared to March 2020, resulting from the decreasing in “Electricity” by 9.5 percent , and “Water” by 4.8 percent . When compared the PPI of April, 2020, to the PPI of April, 2019 (y-o-y), showed a decrease of 11.3 percent , affected by prices fall in “Water” by 15.9 percent , and “Electricity” by 7.9 percent .
