The producer price index in the four-quarter period ending March 20, which marks the end of last Iranian year, grew by 46.7% compared with the corresponding period of the year before.
The index calculated for the four-quarter period leading to Dec. 20, 2020, marking the end of Q3 of last year, had increased by 34.7%.
The lowest and highest annualized producer inflation rates were registered for agriculture and mining sectors with 36.8% and 79.8%, respectively.
PPI stood at 380.8 in Q4 (Dec. 21, 2020-March 20), indicating a 9.8% increase compared with the previous quarter and 67.5% growth over the same quarter of the year before, the Statistical Center of Iran reported.
The highest quarter-on-quarter producer inflation was registered for mining sector with 12.9%.
Compared with the same quarter of the year before, services posted the lowest PPI of 42.6% and mining registered the highest PPI of 113.7% in the fourth quarter of the current year.
PPI represents the average movement in prices from domestic production from the seller's point of view.
Conversely, the consumer price index measures cost changes from the viewpoint of the consumer. In other words, this index tracks change to the cost of production.
The average goods and services Consumer Price Index in the 12-month period ending March 20 increased by 36.4% compared with the corresponding period of the year before.
The consumer inflation for the month under review (Feb. 19-March 20) registered an increase of 48.7% compared with the similar month of the previous Iranian year.
The overall CPI (using the Iranian year to March 2017 as the base year) stood at 298.1 for the month ending March 20, indicating a 1.8% rise compared with the month before.
The highest monthly growth in the index among 12 groups of the basket of consumer goods and services purchased by households in the Iranian month ending March 20 was recorded for two groups of “clothing and shoes” and “hotels and restaurants” with 4.7% while a monthly deflation of 0.1% was posted by “communications” group.
The highest year-on-year inflation in the month under review was posted for “furniture, home appliances and their maintenance” with 68.3% while the lowest YOY inflation was registered for “communications” groups with 20.3%.
The highest and lowest average annual inflation was registered for “transportation” with 65.6% and “communications” with 16.5%.
Services
The services sector experienced the highest average annual producer’s inflation in the last fiscal year (March 2020-21).
The average PPI for the services sector in the year to March 20 increased by 37.8% compared with the year before.
This is the highest annual inflation experienced by the services sector since winter 2013 (the earliest available data on services producers' inflation on SCI’s website).
The services PPI stood at 290.3 in Q4 of the last fiscal year, indicating a 7.3% increase compared with the preceding quarter.
The index measured for Q4 producer inflation in the services sector indicates a 42.6% increase compared with the same quarter of the year before – the highest year-on-year inflation since spring 2012 (the earliest available data on services producers' inflation on SCI’s website).
The services PPI is calculated based on the indexes of 13 subsectors, namely “water networks, wastewater management and wastewater treatment” with a coefficient of 1.2%, “repairing motor vehicles and motorcycles” with 2.8%, “transportation and warehouse services” with 23.2%, “services regarding accommodation and food” with 4.8%, “information and communications” with 8.5%, “insurance services” with 1.7%, “real-estate services” with the coefficient of 26.8%, “professional, scientific and technical activities” with 3%, “administrative and support services” with 1.7%, “education” with 9.3%, “social work services” with 14.2%, “art, entertainment and leisure” with 1.1% and “services categorized as others” with a coefficient of 1.8%.
For “water networks, wastewater management and wastewater treatment”, PPI stood at 165.8 in Q4, indicating an increase of 0.2% and 1.7% compared with the previous quarter and the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period ending March 20 increased by 0.8%.
PPI for “repairing motor vehicles and motorcycles” stood at 444.9, indicating a 10.9% rise compared with the previous quarter and a 63.8% growth compared with the same quarter of the year before. The average PPI for the subsector in the four-quarter period ending March 20 increased by 55%.
The index for “transportation and warehouse services” stood at 333.4, posting a 7.9% rise quarter-on-quarter and a 54.3% rise year-on-year. The average annual PPI for the subsector in the four-quarter period increased 50%.
For “services regarding accommodation and food”, PPI stood at 531.1, registering an 16.3% increase QOQ and a 70.8% increase YOY. The average annual PPI for the subsector in the four-quarter period increased by 54.6%.
For “information and communications”, PPI stood at 218.2, indicating a 6.2% rise compared with the previous quarter and a 22.5% increase compared with the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 20.6%.
“Insurance services” saw the PPI stand at 166.5, registering a 0.9% rise QOQ and an 18.9% increase YOY. The average annual PPI for the subsector in the four-quarter period increased by 19.3%.
For “real-estate services”, the index was at 194.2, posting a 3.4% rise compared with the previous quarter and a 24.9% increase compared with the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 22.8%.
“Professional, scientific and technical activities” had a PPI of 250.3, indicating a 4.5% rise over the preceding quarter and a 42.6% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 36.5%.
PPI measured for the subsector of “administrative and support services” stood at 500.4, showing a 16.5% growth compared with the previous quarter and a 69.1% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 57.3%.
“Education” recorded a PPI of 260.2, indicating an 2.3% rise over the preceding quarter and a 29.8% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 29.5%.
For “social work services”, PPI stood at 348.7, indicating a 7.5% rise compared with the previous quarter and a 45.4% increase compared with the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 41.2%.
“Art, entertainment and leisure” had a PPI of 300, indicating an 8% rise over the preceding quarter and a 40% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 37.4%.
And, “services categorized as others” registered a PPI of 375.9, indicating a 10.4% rise over the preceding quarter and a 49.9% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 44%.
Industries
The PPI of industrial sector in the 12-month period ending March 20 grew by 56.8% compared with the same period of the year before.
The sector’s PPI for the four-quarter period to Dec. 20, 2020, had increased by 37.4%.
The overall PPI of the industrial sector stood at 485.8 in Q4, indicating a 12.2% increase compared with the previous quarter and a 93.6% growth over the same quarter of the year before.
The lowest quarterly PPI inflation rates in Q4 were recorded for “production of tobacco and cigarettes” with 0% and “manufacturing of other industrial products” with 1.7%. The highest quarterly PPI inflation rates were posted for “production of chemicals” with 19%, “production of coke and petroleum refineries’ byproducts” with 16.6%, “manufacturing of motor vehicles, trailers and semi-trailers” with 14.9% and “manufacturing machinery and unclassified equipment” with 13.4%.
The lowest year-on-year PPI inflation rate was registered for “production of tobacco and cigarettes” with 22.9%, “manufacturing of other industrial products” with 37.5% and “print and publication of recorded media” with 40.2%. The highest year-on-year increases were posted by “manufacturing of other transportation equipment” with 154.9%, “production of chemicals” with 129.4%, “production of base metals” with 117.7%, “production of rubber and plastic products” with 102.8% and “manufacturing of electricity-generating equipment” with 97.7% compared with the same quarter of last year.
The lowest annual PPI inflation was recorded by “production of tobacco and cigarettes” with 19%, “print and publication of recorded media” with 25% and “production of coke and petroleum refineries’ byproducts” with 26.9%.
The highest annual PPI was reported for “manufacturing of other transportation equipment” with 138.6% and “production of base metals” with 105.6%, “manufacturing of electricity generating equipment” with 71% and “production of chemicals” with 69.1%.
Mining
The average PPI for the mining sector in the four-quarter period ending March 20 increased by 79.8% compared with the same period of the year before.
The sector’s average PPI for the four-quarter period to Dec. 20, 2020, i.e. the end of Q3 of last Iranian year, had increased by 58.9% year-on-year.
The average annual producer inflation of the “coal extraction” subsector in Q4 was at 72.7% and that of “extraction of metal ores” and “extraction of other mines” subsectors were at 84.1% and 51.1%, respectively.
The overall PPI of the mining sector stood at 667.2 in Q4, indicating a 12.9% increase compared with the previous quarter and 113.7% growth over the same quarter of last year.
The quarter-on-quarter producer inflation of “coal extraction” subsector was at 2.5% in Q4 and those of the “extraction of metal ores” and “extraction of other mines” subsectors were at 14% and 7.4%, respectively.
The year-on-year producer inflation of the “coal extraction” subsector was 95.9% and those of the “extraction of metal ores” and “extraction of other mines” subsectors were 121.3% and 65.8%, respectively.
Electricity
The PPI of electricity sector during the four-quarter period ending March 20 increased by 46.6% compared with the same period of the year before.
The PPI of the sector stood at 171.7 in Q4 of last Iranian year, indicating an increase of 9.4% compared with the preceding quarter and a growth of 62.7% compared with the same quarter of the year before.
Agronomy, Horticulture, Traditional Husbandry
The Producer Price Index for the “agronomy, horticulture and traditional husbandry” group in the four-quarter period to March 20, increased by 34.7% compared with the year before.
SCI had put producer inflation for the four-quarter period leading to Dec. 20, 2020, (previous quarter) at 27.5%.
The overall PPI of this group stood at 389.5 in Q4, indicating a 52.9% increase compared with the same quarter of the year before. Year-on-year producer inflation of Q3 had increased by 52%.
Industrial Chicken Farms
The average PPI for industrial chicken farms in the fourth quarter of last Iranian year (Dec. 21, 2020-March 20) increased by 96.73% compared with the corresponding quarter of the year before.
The overall PPI for the sector in Q4, which ended on March 20, using the year ending March 2017 as the base year, stood at 388.88, indicating a 5.06% growth compared with the preceding quarter.
During the four-quarter period, PPI increased by 58.1% compared with the similar period of the year before. The index had increased by 30.57% in the four-quarter period ending Dec. 20, 2020.
The highest quarter-on-quarter increase of the index among Iranian provinces during the period under review was registered for Yazd with 23.1%. South Khorasan posted the highest quarter-on-quarter deflation among Iranian provinces with 12.6%.
On a year-on-year basis, Mazandaran registered the highest increase with 128.6% and Sistan-Baluchestan posted the lowest inflation with 44%.
Industrial Livestock Farms
The PPI for industrial-scale livestock farms stood at 380.1 in Q4 of last Iranian year, indicating an 11.1% and 68.6% increase compared with the preceding quarter and the same quarter of the year before, respectively.
Over the four-quarter period ending March 20, livestock farms’ PPI increased 32.42% year-on-year. PPI for industrial-scale livestock farms had increased by 16.21% in the four-quarter period ending Dec. 20, 2020.
Gilan posted the highest quarter-on-quarter producer inflation with 35.6% while Bushehr posted the lowest producer inflation with 0.5% compared with preceding quarter.
Khorasan Razavi registered the highest year-on-year producer inflation with 93% while Sistan-Baluchestan posted the lowest year-on-year producer inflation of 20.2% in Q4.
