The Producer Price Index (using fiscal 2016-17 as the base year) stood at 487.1 in the fiscal 2021-22 (ended March 20), indicating a 54.3% growth compared to the year before, new data released by the Statistical Center of Iran say.
The lowest and highest YOY producer inflation was registered for “production, transmission and distribution of electricity” and “mining" with 19.4% and 92.9%, respectively.
The PPI measures price movements 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 changes to the cost of production.
The importance of PPI lies in its predictive content for the future pattern of Consumer Price Index. Changes in PPI are usually reflected in CPI within a short period of time.
The average goods and services Consumer Price Index in the 12-month period ending March 20 increased by 40.2% compared with the corresponding period of the year before, latest data released by the Statistical Center of Iran show.
The annualized consumer inflation reported on a monthly basis by SCI suggests the fifth consecutive month of decline.
SCI put consumer inflation for urban and rural areas at 39.7% and 42.8%, respectively.
The highest and lowest annualized inflation rates were registered for “hotels and restaurants” with 61.6% and “communications” with 6.4%.
Services
The overall PPI for the services sector stood at 374.9 during the year under review, indicating a 46.9% increase compared with the year before.
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%, “repair of motor vehicles and motorcycles” with 2.8%, “transportation and warehouse services” with 23.2%, “services related to accommodation and food” with 4.8%, “information and communications” with 8.5%, “insurance services” with 1.7%, “real-estate services” with 26.8%, “professional, scientific and technical activities” with 3%, “administrative and support services” with 1.7%, “education” with 9.3%, “social services” with 14.2%, “art, entertainment and leisure” with 1.1% and “services categorized as others” with 1.8%.
For “water networks, wastewater management and wastewater treatment”, PPI stood at 210.7 in the fiscal 2021-22, up 28.2% compared with the previous year.
PPI for “repairing motor vehicles and motorcycles” stood at 594.6, indicating a 60% growth compared with the year before.
The index for “transportation and warehouse services” stood at 437.6, posting a 51.9% rise year-on-year.
For “services related to accommodation and food”, PPI stood at 789, an 84.3% increase YOY.
For “information and communications”, it stood at 251.7, indicating a 25.1% rise compared with the previous year.
“Insurance services” saw PPI stand at 236.2, registering a 44.4% increase compared with the last year.
For “real-estate services”, the index was at 223.6, posting a 24.9% increase compared with the year before.
“Professional, scientific and technical activities” had a PPI of 300.9, indicating a 33.9% increase year-on-year.
The PPI measured for the subsector of “administrative and support services” stood at 659.3, showing a 64.8% increase compared with the year before.
“Education” recorded a PPI of 309.9, indicating a 32.7% increase compared with the last year.
For “social services”, PPI stood at 486, indicating a 57.9% rise compared with the previous year.
“Art, entertainment and leisure” had a PPI of 392.4, indicating a 47.1% rise year-on-year.
And, “services categorized as others” registered a PPI of 491.4, indicating a 51.6% rise compared with the previous year.
Industry
The overall PPI of the industrial sector stood at 605 in thefiscal 2021-22, indicating a 56.7% increase compared with the previous fiscal.
The lowest year-on-year PPI inflation rate was registered for “production of tobacco” with 25%, “production of pharmaceuticals, chemicals used in pharmaceutical and herbal remedies” with 34.8% and “production of motor vehicles, trailers and semi-trailers” with 38.7%. The highest year-on-year increase was posted by “production of chemicals” with 73.9%, “production of wood products and furniture” with 69.8%, as well as “production of non-metallic minerals” with 68.5% compared with the last year.
Mining
The overall PPI of the mining sector (using the Iranian year ending March 2017 as the new base year) stood at 1,026 in the fiscal 2021-22, indicating a 92.9% increase compared with the previous year.
The year-on-year producer inflation of the “coal extraction” subsector was 83.4% and those of the “extraction of metal ores” and “extraction of other mines” subsectors were 96.7% and 63.8%, respectively.
Electricity
The sector’s PPI (using the Iranian year ending March 2017 as the base year) stood at 180.9 in the fiscal 2021-22, indicating an increase of 19.4% compared with the year before.
Agronomy, Horticulture, Traditional Husbandry
The overall PPI of “agronomy, horticulture and traditional husbandry” stood at 323.1 during the year under review, indicating a 34.7% increase compared with the year before.
Industrial Chicken Farms
The overall PPI of the “industrial chicken farms” stood at 536.4 during the period under review, indicating a 66% increase compared with last year.
Industrial Livestock Farms
The PPI for livestock farms stood at 485.9 in the fiscal 2021-22, indicating a 359% increase compared with the previous year.
Gilan Province posted the highest year-on-year PPI with 77.2% while Bushehr posted the lowest producer inflation of 30.5% in the fiscal 2021-22.
