The Producer Price Index in the four-quarter period ending Sept. 22, 2022, which marks the end of the second quarter of the current Iranian year, rose by 39.9% compared with the corresponding period of last year, data released by the Statistical Center of Iran show.
The lowest and highest annualized producer inflation rates were registered for “production, transmission and distribution of electricity” and “agriculture" with 12% and 58.8%, respectively.
PPI (using fiscal 2016-17 as the base year) stood at 671 in Q2 (June 22-Sept. 22), indicating a 7.1% increase compared with the previous quarter and 43.2% growth over the same quarter of last year.
The lowest and highest quarter-on-quarter producer inflation was registered for “production, transmission and distribution of electricity” with 2.4% and “agriculture” with 17.5%, respectively.
Compared with the same quarter of the year before, “production, transmission and distribution of electricity” posted the lowest PPI of 10.9% and “agriculture” registered the highest PPI of 60.5% in the second quarter of the current fiscal year.
Services
The overall PPI for the sector stood at 560 in Q2, indicating a 16.2% increase compared with the preceding quarter. The index indicates a 56.1% year-on-year rise.
The average PPI for the services sector in the four-quarter period ending Sept. 22 increased by 49.7% compared with the same period of the year before. This marks the highest annualized producer inflation experienced by the services sector since winter 2013 (the earliest available data on PPI inflation on the SCI database).
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 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 274.7 in Q2, up 34.1% compared with the same quarter of the year before and up 25% compared with the previous quarter. The average annual PPI for the subsector in the four-quarter period ending Sept. 22 increased by 27%.
PPI for “repairing motor vehicles and motorcycles” stood at 991.2, indicating a 22% rise compared with the previous quarter and a 74.6% growth compared with the same quarter of the year before. The average PPI for the subsector in the four-quarter period ending Sept. 22 surged by 61.7%.
The index for “transportation and warehouse services” stood at 642.3, posting a 10.4% rise quarter-on-quarter and a 52.3% rise year-on-year. The average annual PPI for the subsector in the four-quarter period jumped by 50.3%.
For “services related to accommodation and food”, PPI stood at 1,571, registering a 30.7% increase QOQ and a 117.1% increase YOY. The average annual PPI for the subsector in the four-quarter period increased by 96.4%.
For “information and communications”, it stood at 304.4, showing a 4.8% rise compared with the previous quarter and a 25.8% increase compared with the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 25.5%.
“Insurance services” saw the PPI stand at 308.5, registering a 7.6% rise QOQ and a 32.5% increase YOY. The average annual PPI for the subsector during the period increased by 41.9%.
For “real-estate services”, the index was at 278.8, posting an 8.7% rise compared with the previous quarter and a 28.6% increase compared with the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 26.3%.
“Professional, scientific and technical activities” had a PPI of 391.6, indicating a 7.4% rise over the preceding quarter and a 33.7% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 31.4%.
PPI measured for the subsector of “administrative and support services” stood at 921.3, showing a 10% growth compared with the previous quarter and a 46.4% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 51.5%.
“Education” recorded a PPI of 389.3, indicating a 7.9% rise over the preceding quarter and a 39.7% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 36.6%.
For “social services”, PPI stood at 810.5, indicating a 27.7% rise compared with the previous quarter and a 71% increase compared with the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 62.2%.
“Art, entertainment and leisure” had a PPI of 631.6, indicating a 21.5% rise over the preceding quarter and a 67.3% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 56.4%.
And, “services categorized as others” registered a PPI of 744.1, indicating a 17.7% rise over the preceding quarter and a 58.2% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 51.8%.
Industry
The overall PPI of the industrial sector stood at 750.9 in Q2, indicating a 2.3% decrease compared with the previous quarter and a 30.1% growth over the same quarter of the year before.
The industrial PPI sector in the four-quarter period ending Sept. 22 grew by 40.4% compared with the corresponding period of the year before.
The lowest quarterly PPI inflation rates in Q2 were recorded for “production of textiles” with 1.7%, “production of uncategorized machinery and other equipment” with 2.3% and “production of motor vehicles, trailers, semi-trailers” with 2.4%.
The highest quarterly PPI inflation rates were posted for “production of pharmaceuticals, chemicals used in pharmaceutical and herbal remedies” with 23.2%, “printing and duplicating the recorded media” with 11.1% and “production of wood products (except for furniture, goods from straw and mat weaving materials)” with 9%.
The lowest year-on-year PPI inflation rate was registered for “production of computer, electronic and lighting products” with 17.2%, “production of uncategorized machinery and other equipment” with 25% and “production of wood products (except for furniture, goods from straw and mat weaving materials)” with 29.5%. The highest year-on-year increase was posted by “production of food products” with 80.7%, “printing and duplicating the recorded media” with 53.8%, and “production of beverages” with 50.9% compared with the same quarter of last year.
The lowest annualized PPI inflation was recorded by “production of computer, electronic and lighting products” with 21.2%, “production of motor vehicles, trailers, semi-trailers” with 29.5% and “production of uncategorized machinery and other equipment” with 29.9%. The highest annual PPI was recorded by “production of food products” with 71.2%, “other non-metallic minerals” with 58.2% and “printing and duplicating the recorded media” with 57.1%.
Mining
The average PPI for the mining sector in the four-quarter period ending Sept. 22 increased by 40.4% compared with the same period of the year before.
The average annual producer inflation of the “coal extraction” subsector in Q2 was at 48.5% and those of “extraction of metal ores” and “extraction of other mines” were at 38.4% and 56% respectively.
The overall PPI of the mining sector (using the Iranian year ending March 2017 as the new base year) stood at 1,155.1 in Q2, indicating a 2% decrease compared with the previous quarter, but a 13.4% rise against the same quarter of last year.
The quarter-on-quarter producer inflation of the “coal extraction” was at -3.6% in Q2 and those of the “extraction of metal ores” and “extraction of other mines” reached -3.7% and 13%, respectively.
The year-on-year producer inflation of “coal extraction” was 26.4% and those of the “extraction of metal ores” and “extraction of other mines” were 8.6% and 59.8%, respectively.
Electricity
The PPI for the electricity sector during the four-quarter period ending Sept. 22 increased by 12% compared with the same period of the year before.
The sector’s PPI (using the Iranian year ending March 2017 as the base year) stood at 192.9 in Q2, indicating an increase of 2.4% compared with the preceding quarter and a rise of 10.9% compared with the same quarter of the year before.
Agriculture
The index for griculture sector in the four-quarter period to Sept. 22 increased by 58.5% compared with the year before.
The overall PPI of this group stood at 847.5 in Q1, indicating a 60.5% increase compared with the same quarter of the year before and 17.5% compared with the quarter before.
