The producer price index in the four-quarter period ending Dec. 21, 2019, which marks the end of the third quarter of the current Iranian year, grew by 50% compared with the corresponding period of the year before.
The index calculated for the period leading to Sept. 22, marking the end of Q2 of the current year, had increased by 59.9%.
PPI (using 2011 as the base year) stood at 475.9 in Q3 (Sept. 23-Dec. 21, 2019), indicating a 0.3% decrease compared with the previous quarter and a 25.6% growth over the same quarter of the year before, the Statistical Center of Iran reported on Wednesday.
The index calculates and represents the average movement in selling prices from domestic production over time. It 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 change to the cost of production.
The breakdown of PPI for different economic sectors of Iran in Q3 is as follows:
Industry
The producer price index for the industrial sector in Q3 declined by 2.3% compared to the preceding quarter.
This is the first time in 16 quarters that the index has declined compared to the quarter before.
The last time producer inflation of the industrial sector, which measures price movements from the seller’s point of view, registered a negative growth (-1.8%) was in the third quarter of the fiscal 2015-16 (Sept. 23-Dec. 21, 2015).
The overall PPI for the industrial sector stood at 533.9 in autumn, indicating a 27% rise compared with the same quarter of the year before.
The index increased by 61.5% in the four-quarter period ending Dec. 21 compared with the corresponding period of the year before.
Mining
PPI for the mining sector in the four-quarter period ending Dec. 21 increased by 52% compared with the corresponding period of the year before.
The sector’s average PPI for the four-quarter period ending Sept. 22, end of Q2, had increased by 59.2% year-on-year.
The average annual producer inflation of the “iron ore extraction” subsector in Q3 was at 90.3% and those of “extraction of metal ores” and “extraction of other mines” subsectors were at 53.4% and 36.4%, respectively.
The overall PPI of the mining sector stood at 523.3 in Q3, indicating a 6.5% increase compared with the previous quarter and a 37.6% growth over the same quarter of the year before.
The quarter-on-quarter producer inflation of the “iron ore extraction” subsector was at 18.3% in fall and those of the “extraction of metal ores” and “extraction of other mines” subsectors were at 5.5% and 6.2%, respectively.
Year-on-year producer inflation of the “iron ore extraction” subsector was 109.1% and those of the “extraction of metal ores” and “extraction of other mines” subsectors were 33.6% and 35.4%, respectively.
Services
The producer price index for the services sector stood at 396.4 in Q3, indicating a 6.2% increase compared with the preceding quarter and a 27.8% rise compared with the same quarter of last year.
Services PPI is calculated based on the indexes of eight subsectors, namely “repairing motor vehicles, motorcycles and home devices”, “hotels and restaurants”, “transportation, warehouse services and communications”, “brokerage (insurance) services”, “real estate, renting and business”, “education”, “health services and social work” and “other public, social and personal services”.
PPI for “repairing motor vehicles, motorcycles and home devices” subsector stood at 508.2, indicating an 8.9% rise compared with the previous quarter and a 34% growth compared with the same quarter of last year.
The index for “hotels and restaurants” was at 628.5, posting a 7.2% rise quarter-on-quarter and a 46.3% rise year-on-year.
“Transportation, warehousing services and communications” PPI stood at 510.1, registering a 6.5% increase QOQ and 38.5% YOY.
“Financial brokerage (insurance)” PPI was 375.2, indicating a 1.4% rise compared with the previous quarter and a 25.7% increase compared with the same quarter of last year.
“Real estate, renting and business” PPI stood at 261.6, registering a 1.4% rise QOQ and a 14.7% increase YOY.
“Education” PPI stood at 368.4, posting a 17.1% rise compared with the previous quarter and a 20.6% increase compared with the same quarter of last year.
The PPI index for “Health services and social work” stood at 544.2, indicating a 6.2% rise over the previous quarter and a 23.5% increase over the same quarter of last year.
And, the PPI measured for the subsector of “other public, social and personal services” stood at 404.6, showing a 6.7% growth compared with the previous quarter and a 24.2% increase over the same quarter of last year.
Electricity
PPI for the electricity sector in the four-quarter period ending Dec. 21 decreased by 2.31% compared with the corresponding period of the year before.
The overall PPI of the electricity sector stood at 133.68 in Q3, indicating an increase of 10.92% compared with the same quarter of the preceding year.
Cattle Farms
The index for the industrial-scale cattle farms stood at 506.79 in Q3.
The sector’s average PPI for the four-quarter period to Dec. 21, end of Q3, increased by 58.9% compared with the preceding year's corresponding period.
PPI registered a 1.07% decrease compared with the preceding quarter and a 24.65% rise compared with the same quarter of last year.
Chicken Farms
PPI for industrial chicken farms in the four-quarter period marking the end of Q3 increased by 42.23% compared with last year's corresponding period.
The overall PPI for the sector in autumn stood at 537.09.
The index indicates a 10.44% increase compared with the preceding quarter and a 14.14% rise compared with last year's same quarter.
The highest quarter-on-quarter increase of the index among Iranian provinces during the period under review was registered for Gilan with 40.22% and the sharpest decline was recorded in Lorestan with 10.62%.
On a year-on-year basis, Sistan-Baluchestan registered the highest increase with 67.57% and Qom posted the biggest decrease with 5.08%, the Statistical Center of Iran reported.
