The overall monthly Producer Price Index of Industrial Sector Index (PPI) for June, 2020 was estimated at 36.8 points showing an increase of 7.6 percent compared to the previous month’s PPI. (May, 2020).
When compared on y-o-y basis, June, 2020 showed a decrease of 40.7 percent compared to the PPI of corresponding month last year (June 2019), according to data released by the Planning and Statistics Authority (PSA).
The PPI of Crude Petroleum and Natural Gas production increased by 8.8 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 June PPI of Mining sector showed an increase by 8.8 percent when compared with PPI of May 2019, primarily due to the price increase of “Crude petroleum and natural gas” by 8.8 percent. When compared with its counterpart in previous year (June 2019), there was a decrease on this sector by 47.9 percent.
In the Manufacturing sector PPI, an increase of 6.4 percent has been recorded in June 2020, when compared with the previous month’s Manufacturing index (May, 2020). The increase in prices in varying degrees were seen in: “Refined Petroleum products” by 13.8 percent, followed by “Juices” by 2.5 percent, “Dairy products” by 1.2 percent, “Cement and Other non-metallic products” by 0.9 percent, and “Grain mill and Other products” by 0.6 percent.
However, the decreasing prices are noticed in “Basic Metals” by 3.6 percent, “Rubber and Plastics products” by 2.8 percent, “Basic Chemicals” by 2.5 percent, “Other chemical products and fibers” by 2.1 percent, and “Beverages” by 0.7 percent. No changes noticed in “Paper and Paper products”.
Comparing with the index with the previous year (June 2019), “Manufacturing” PPI of June 2020 showed a decrease of 26.9 percent. The major groups which explain this price fall were: “Refined Petroleum products” by 33.9 percent, followed by “Basic chemicals” by 21.6 percent, “Rubber and Plastics products” by 12.9 percent, “Basic Metals” by 8.3 percent, “Other chemical products and fibers” by 3.4 percent, and “Beverages” by 1.4 percent.
However, prices increased in “Juices” by 5.1 percent, followed by “Dairy products” by 2.7 percent, “Paper and Paper Products” by 2.0 percent, “Cement and Other non-metallic products” 1.9 percent, and “Grain mill and Other products” by 1.0 percent.
The PPI of Electricity and Water group showed a decrease of 1.9 percent compared to May 2020, resulting from the decreasing in “Electricity” by 9.7 percent, and increasing in “Water” by 7.8 percent. When compared the PPI of June, 2020, to the PPI of June, 2019 [y-o-y], showed a decrease of 6.0 percent, affected by prices fall in “Electricity” by 13.3 percent, and increasing in “Water” prices by 3.0 percent.
