Domestic Economy
0

Mining PPI Inflation at 37.7% in Q1

Mining PPI Inflation at 37.7% in Q1Mining PPI Inflation at 37.7% in Q1

The average Producer Price Index for the mining sector in the four-quarter period ending June 20 increased by 37.7% compared with the same period of last year, according to the latest data released by the Statistical Center of Iran. 
The sector’s average PPI for the four-quarter period to March 19, marking the end of Q4 in the last Iranian year, had increased by 45.1% year-on-year. 
The average annual producer inflation of the “iron ore extraction” subsector in Q1 was at 72.2% and those of “extraction of metal ores” and “extraction of other mines” subsectors were at 36% and 34.3%, respectively. 
The overall PPI of mining sector (using 2011 as the base year) stood at 628.2 in Q1, indicating a 16.1% increase compared with the previous quarter and a 32.4% growth over the same quarter of last year. 
The quarter-on-quarter producer inflation of the “iron ore extraction” subsector was at 2.8% in spring and those of the “extraction of metal ores” and “extraction of other mines” subsectors were at 17.2% and 17%, respectively. 
The year-on-year producer inflation of “iron ore extraction” subsector was 22.3% and those of “extraction of metal ores” and “extraction of other mines” subsectors were 33.2% and 32.9%, respectively.
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.
PPI gauges the price fluctuations of goods and services for the producer whereas CPI measures changes in the price level of a basket of consumer goods and services purchased by households.
In other words, PPI is an index of prices measured at the wholesale, or producer level. It shows trends within the wholesale markets (as it was once called the Wholesale Price Index), production industries and commodities markets from the perspective of the seller.

Add new comment

Read our comment policy before posting your viewpoints

Financialtribune.com