The average Producer Price Index for the “agronomy, horticulture and traditional husbandry” sector in the four-quarter period to March 20, which marks the end of the fourth quarter of the previous fiscal year (March 2021-22), increased by 66% compared with the year before, according to the Statistical Center of Iran.
The center had put producer inflation of the four-quarter period leading to Dec. 21 (Q3) at 70.1%.
The overall PPI of this group (using the year ending March 2017 as the new base year) stood at 604.7 in Q4 (Dec. 22, 2021-March 20, 2022), indicating a 33.8% increase compared with the same quarter of the year before.
Year-on-year producer inflation of the previous quarter had increased by 67.8%.
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.
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