The Producer Price Index in the four-quarter period ending March 20, 2022, which marks the end of the fourth quarter of the previous Iranian year, grew by 54.3% compared with the corresponding period of last year, new data released by the Statistical Center of Iran say.
The lowest and highest annualized producer inflation was registered for “production, transmission and distribution of electricity” and “mining" with 19.4% and 92.9%, respectively.
The PPI (using fiscal 2016-17 as the base year) stood at 540.8 in Q4 (Dec. 22, 2021-March 20), indicating a 4.9% increase compared with the previous quarter and 42% growth over the same quarter of last year.
The lowest and highest quarter-on-quarter producer inflation was registered for “electricity” with 2.1% and “industry” with 7.8%, respectively.
Notably, the agriculture sector registered an 11.4% deflation.
Compared with the same quarter of the year before, “production, transmission and distribution of electricity” posted the lowest PPI of 10.6% and “mining” registered the highest PPI of 64.5% in the fourth quarter of the previous year.
Services
The overall PPI for the services sector stood at 423.4 in Q4 of the last fiscal year, indicating a 7.3% increase compared with the preceding quarter.
The index indicates a 45.8% increase compared with the same quarter of the year before.
The average PPI for the services sector in the four-quarter period ending March 20 increased by 46.9% compared with the same period of the year before.
This marks the highest annual inflation since winter 2013 (the earliest available data on services producer inflation on SCI’s website).
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 219.5 in Q4, unchanged compared with the previous quarter and up 32.4% compared with the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period ending March 20 increased by 28.2%.
PPI for “repairing motor vehicles and motorcycles” stood at 681.6, indicating a 9.6% rise compared with the previous quarter and a 53.2% growth compared with the same quarter of the year before. The average PPI for the subsector in the four-quarter period ending March 20 surged by 60%.
The index for “transportation and warehouse services” stood at 491.3, posting a 7.6% rise quarter-on-quarter and a 47.3% rise year-on-year. The average annual PPI for the subsector in the four-quarter period jumped by 51.9%.
For “services related to accommodation and food”, PPI stood at 964, registering a 14% increase QOQ and an 81.5% increase YOY. The average annual PPI for the subsector in the four-quarter period increased by 84.3%.
For “information and communications”, it stood at 275.2, indicating a 7% rise compared with the previous quarter and a 26.1% increase compared with the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 25.1%.
“Insurance services” saw PPI stand at 254.2, registering a 2.3% rise QOQ and a 52.6% increase YOY. The average annual PPI for the subsector in the four-quarter period increased by 44.4%.
For “real-estate services”, the index was at 243.1, posting a 4.3% rise compared with the previous quarter and a 25.2% increase compared with the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 24.9%.
“Professional, scientific and technical activities” had a PPI of 322.1, indicating a 3% rise over the preceding quarter and a 28.7% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 33.9%.
The PPI measured for the subsector of “administrative and support services” stood at 750.8, showing a 7.5% growth compared with the previous quarter and a 50.1% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 64.8%.
“Education” recorded a PPI of 354.3, indicating a 3.8% rise over the preceding quarter and a 36.1% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 32.7%.
For “social services”, PPI stood at 553.3, indicating a 7.6% rise compared with the previous quarter and a 58.7% increase compared with the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 57.9%.
“Art, entertainment and leisure” had a PPI of 447.7, indicating an 8.5% rise over the preceding quarter and a 49.3% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 47.1%.
And, “services categorized as others” registered a PPI of 556.8, indicating an 8.4% rise over the preceding quarter and a 48.1% jump over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 51.6%.
Industry
The overall PPI of the industrial sector stood at 683.6 in Q4, indicating a 7.8% increase compared with the previous quarter and a 40.7% growth over the same quarter of the year before.
The industrial PPI in the four-quarter period ending March 20 grew by 56.7% compared with the same period of the year before.
The lowest quarterly PPI inflation rates in Q4 were recorded for “production of wood and furniture” with 1.5% and “production of motor vehicles, trailers and semi-trailers” with 1.9% and “production of pharmaceuticals, chemicals used in pharmacy and herbal remedies” with 2%. The highest quarterly PPI inflation rates were posted for “production of coke and oil refining products” with 18%, “production of tobacco” with 13.8% and “production of transportation equipment” with 11%.
The lowest year-on-year PPI inflation rate was registered for “production of motor vehicles, trailers and semi-trailers” with 20.6%, “production of pharmaceuticals, chemicals used in pharmacy and herbal remedies” with 28.2% and “production of uncategorized machines and equipment” with 38.7%. The highest year-on-year increase was posted by “production of chemicals” and “printing and duplication of recorded media” with 55.9%, as well as “production of clothes” with 51.6% compared with the same quarter of last year.
The lowest annual PPI inflation was recorded by “production of tobacco” with 25%, “production of pharmaceuticals, chemicals used in pharmacy and herbal remedies” with 34.8% and “production of motor vehicles, trailers and semi-trailers” with 36.7%. The highest annual PPI was recorded by “production of chemicals” with 73.9%, “production of wood and furniture” with 69.8% and “other non-metallic minerals” with 68.5%.
Mining
The average Producer Price Index for the mining sector in the four-quarter period ending March 20, 2022, increased by 92.9% compared with the same period of the year before.
The sector’s average PPI for the four-quarter period to Dec. 21, 2021, i.e., the end of Q3 of last Iranian year, had increased by 105.9% year-on-year.
The average annual producer inflation of the “coal extraction” subsector in Q4 was at 83.4% and those of “extraction of metal ores” and “extraction of other mines” subsectors were 96.7% and 63.8%, respectively.
The overall PPI of the mining sector (using the Iranian year ending March 2017 as the new base year) stood at 1,097 in Q4, indicating a 3.2% increase compared with the previous quarter and a 64.5% growth over the same quarter of last year.
The quarter-on-quarter producer inflation of the “coal extraction” subsector was at 6% in Q4 and those of the “extraction of metal ores” and “extraction of other mines” subsectors reached 3% and 3.9%, respectively.
The year-on-year producer inflation of the “coal extraction” subsector was 71% and those of the “extraction of metal ores” and “extraction of other mines” subsectors were 65.3% and 54.5%, respectively.
Electricity
PPI for the electricity sector during the four-quarter period ending March 20 increased by 19.4% 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 189.9 in the fourth quarter, indicating an increase of 2.1% compared with the preceding quarter and a rise of 10.6% compared with the same quarter of the year before.
Agronomy, Horticulture, Traditional Husbandry
The index for the “agronomy, horticulture and traditional husbandry” sector in the four-quarter period to March 20 increased by 66% compared with the year before.
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, 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%.
Industrial Chicken Farms
PPI for the “industrial chicken farms” in the four-quarter period increased by 52.8% compared with the year before.
SCI had put producer inflation of the four-quarter period leading to Dec. 21 (Q3) at 69%.
The overall PPI of this group (using the year ending March 2017 as the new base year) stood at 510.3 in Q4 (Dec. 22-March 21), indicating a 31.2% increase compared with the same quarter of the year before.
Year-on-year producer inflation of the previous quarter had increased by 67.8%.
Industrial Livestock Farms
The average annual producer inflation for industrial-scale livestock farms stood at 59% in Q4.
The PPI for livestock farms stood at 531 in Q4, indicating a 3.2% and 39.7% increase compared with the preceding quarter and the same quarter of the year before, respectively.
Ilam Province posted the highest quarter-on-quarter producer inflation with 9.8% while Alborz posted the lowest producer inflation with 1.1% compared with the preceding quarter.
Ardabil Province posted the highest year-on-year PPI with 50.6% while Sistan-Baluchestan posted the lowest producer inflation of 22.9% in Q4.
