Monthly Producer Price Index of Industrial Sector January 2019 (Base year 2013=100)

 3/13/2019


  •  General PPI of January  2019, decreased by 4.2% when compared with previous month (M-O-M).
  •  General PPI of January  2019, decreased by 0.6% when compared with January  2018 (Y-O-Y).
  •  PPI of Crude Petroleum and Natural gas production decreased by 4.6%, comparing with previous month.

 
Planning and Statistics Authority (PSA) has released the Monthly Producer Price Index (PPI) of the Industrial sector for January,2019 with the base year 2013. Producer price index covers goods relating to “Mining” (weight: 72.7%),
“Manufacturing” (weight: 26.8%), and “Electricity & Water” (weight: 0.5%).

         Mining
The PPI of January , 2019 for this sector showed a decrease by 4.6% when compared with PPI of December 2018, primarily due to the decrease of “Crude petroleum and natural gas” prices by 4.6%. PPI of January 2019, when compared with its counterpart in previous year (January 2018), there has been an increase of 2.8%. Graph (1) showed the monthly movement of “Mining” index during January 2018 and January 2019, while Graph (2) showed the  monthly rate of change in General PPI and Mining.

Manufacturing
A decrease of 3.8% has been recorded in January 2019, when compared with the previous month’s Manufacturing index (December,2018). The prices decrease are seen in: “Refined Petroleum products” by 5.5%, “Basic Chemicals" by 2.3%, “Rubber and Plastics products”  by 0.9%, “Cement and Other non-metallic products” by 0.4%, “Dairy products” by 0.3%, “Juices” by 0.2% ,“Grain mill and Other products” and “Beverages” by 0.1% for each.
 However, the increasing prices are noticed in: "Paper and Paper products ” by 1.6%, and “Basic Metals” by 1.5%.No change noticed in, “Other chemical products and fibers”. 
 
Comparing with the index of counterpart in the previous year (January 2018), “Manufacturing” PPI of January, 2019 showed a decrease of 7.9%. The major groups which explain this price fall are: “Refined Petroleum products” by 10.3%, “Basic Metals” by 7.7%, "Cement and Other non-metallic products” 3.8%, “Basic chemicals” by 2.1%, “Beverages” by 1.9%, “Grain mill and Other products” by 0.1%.

 
 However, prices rise also noticed in “Other chemical products and fibers” by 12.8%, followed by “Paper and Paper Products” by 11.9%, “Dairy products” by 10.0%, and "Juices" by 5.2%.
 "Rubber and Plastics products” remained without any change.


Electricity and Water
The PPI of this group showed an increase of 0.5% compared to December 2018, resulting from an increasing price in “Electricity” by 2.0%, and a decreasing  in “Water” by 1.9%. When compared the PPI of January,2019, to the PPI of January,2018  [Y-o-Y], showed an increase of 5.5%, affected by  prices rise in “Water” by 10.5%, and “Electricity”  by 2.5%.

Overall Index (PPI of Industrial sector)
The PPI for January,2019 is estimated at 65.7 points showing a decrease by 4.2%, when compared to the previous month’s December, 2018. On [Y-o-Y] basis, PPI of January,2019 showed a decrease  of 0.6% when compared to the PPI of January,2018. Graph (4) shows the monthly of PPI and rate of change during January,2018 to January,2019.

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