DOHA: The monthly Producer’s Price Index (PPI) of the industrial sector for July 2014 declined by 2.4 percent over the PPI of June this year, while the over all PPI index (year-on-year) has decreased by 6.3 percent when compared to the PPI of July 2013, latest official data showed.
According to the Ministry of Development Planning and Statistics (MDPS), the PPI of industrial sector covers mining, electricity & water and manufacturing activities in the country.
This indicator is a measure of the average changes in selling prices received by domestic producers for their output. The PPI for July, 2014 stands at 167.2 (Base year 2006=100), which showed a decrease of 2.4 percent.
The mining group (with a weight of 77 percent), PPI showed a decline of 3.2 percent, the decreasing price showed in crude petroleum and natural gas by 3.2 percent.
The manufacturing group (with a weight of 21 percent) PPI showed a rise of 1.3 percent. The increasing price was explained by the combined effect of increasing prices seen in dairy products by 3 percent, refined petroleum products by 2.1 percent, cement and other non-metallic products by 0.6 percent, beverages by 0.4 percent and basic chemicals increased by 0.1 percent.
On the other hand, decreasing prices noted in grain mill and other products by 0.9 percent. Electricity and water group (with 2 percent weight), PPI has remained stable in July 2014.
The mining group PPI dropped by 6.4 percent year-on-year, primarily due to the price decrease seen in “crude petroleum and natural gas” group by the same percentage.
The manufacturing group PPI showed a decline of 6 percent in July, 2014, when compared to the PPI of July, 2013. The major groups which explain this price fall include: refined petroleum products by 9.2 percent, basic metals by 2.9 percent, beverages by 2.2 percent and basic chemicals by 0.1 percent.
However, price rise is noticed in dairy products by 3.8 percent, cement and other non-metallic products by 2.4 percent and grain mill and other products by 0.2 percent. The PPI for electricity and water showed a decrease of 5 percent resulting from the effect of price fall seen in water by 4.9 percent and electricity by 4.4 percent. The Peninsula
