Doha: The overall monthly Producer Price Index (PPI) of industrial sector for February 2020 was estimated at 59.9 points, down 5.8 percent, when compared to the previous month’s January 2020. The February PPI showed a decrease of 10.6 percent when compared to the PPI of February 2019, official data released yesterday showed.
The Planning and Statistics Authority (PSA) has calculated the PPI of the industrial sector for February 2020 with the base year 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 PPI of February, 2020 for Mining sector showed a decrease by 8.3 percent when compared with PPI of January 2020, primarily due to the price decline of “Crude petroleum and natural gas” by 8.3 percent. PPI of February 2020, when compared with its counterpart in previous year (February 2019), there was a decrease of 14.4 percent.
The PPI of Manufacturing sector recorded a decrease of 0.8 percent in February 2020, when compared with the previous month’s Manufacturing index (January,2020). The prices decrease are seen in: “Refined Petroleum products” by 1.9 percent, followed by “Juices” and “Rubber and Plastics products” by 1.2 percent each, “Cement and Other non-metallic products” by 0.6 percent, and “Grain mill and Other products” by 0.2 percent, However, the increasing prices are noticed in Basic Metals” by 3.4 percent, “Beverages” by 1.4 percent, Paper and Paper products” by 1.0 percent, Basic Chemicals” by 0.3 percent, and “Dairy products” by 0.1 percent. No changes noticed in “Other chemical products and fibers.
Comparing with the index in the previous year (February 2019), “Manufacturing” PPI of February 2020 showed a decrease of 1.9 percent. The major groups which explain this price fall are: “Basic Metals” by 6.9 percent, “Basic chemicals” by 6.1 percent, “Cement and Other non-metallic products” 3.4 percent. “Beverages” by 0.8 percent, and “Grain mill and Other products” are decreased by 0.2 percent. However, prices increased in “Paper and Paper Products” by 3.0 percent, followed by “Juices” by 2.6 percent, “Other chemical products and fibers” by 2.2 percent, “Dairy products” by 0.3 percent, “Rubber and Plastics products” by 0.2 percent, and “Refined Petroleum products” by 0.1 percent.
The PPI of Electricity and Water group showed an increase of 2.5 percent compared to January 2020, resulting from the increasing in “Electricity” by 3.9 percent, and “Water” by 0.7 percent. When compared the PPI of February, 2020, to the PPI of February, 2019 (Y-o-Y), showed an increase of 7.0 percent, affected by prices rise in “Water” by 8.4 percent, and “Electricity” by 6.1 percent.
