The average Producer Price Index for the services sector in the four-quarter period ending June 21, which marks the end of the first quarter of the current Iranian year and spring, increased by 47.3% 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 database of the Statistical Center of Iran).
The overall PPI for the sector stood at 482 in Q1 (March 21-June 21), indicating a 13.8% increase compared with the preceding quarter.
The index indicates a 49.4% increase year-on-year.
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.
13 Subsectors
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 219.7 in Q1, up 60.4% compared with the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period ending June 21 increased by 24.6%.
PPI for “repairing motor vehicles and motorcycles” stood at 812.6, indicating a 19.2% rise compared with the previous quarter and a 60.2% growth compared with the same quarter of the year before. The average PPI for the subsector in the four-quarter period ending June 21 surged by 58.3%.
The index for “transportation and warehouse services” stood at 581.8, posting an 18.4% rise quarter-on-quarter and a 52.8% rise year-on-year. The average annual PPI for the subsector in the four-quarter period jumped by 50.6%.
For “services related to accommodation and food”, PPI stood at 1,202, registering a 24.7% increase QOQ and a 93.2% increase YOY. The average annual PPI for the subsector in the four-quarter period increased by 87.1%.
For “information and communications”, it stood at 290.5, showing a 5.5% rise compared with the previous quarter and a 25.1% 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%.
“Insurance services” saw the PPI stand at 286.8, registering a 12.8% rise QOQ and a 36.9% increase YOY. The average annual PPI for the subsector during the period increased by 45.1%.
For “real-estate services”, the index was at 256.6, posting a 5.6% rise compared with the previous quarter and a 27.2% increase compared with the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 25.3%.
“Professional, scientific and technical activities” had a PPI of 364.7, indicating a 13.2% rise over the preceding quarter and a 32.2% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 31.1%.
PPI measured for the subsector of “administrative and support services” stood at 837.7, showing an 11.6% growth compared with the previous quarter and a 50% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 58.2%.
“Education” recorded a PPI of 360.9, indicating a 1.9% 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 34.2%.
For “social services”, PPI stood at 634.9, indicating a 14.7% rise compared with the previous quarter and a 57.8% increase compared with the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 58.3%.
“Art, entertainment and leisure” had a PPI of 520.1, indicating a 16.2% rise over the preceding quarter and a 56.9% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 50.7%.
And, “services categorized as others” registered a PPI of 632, indicating a 13.5% rise over the preceding quarter and a 48.7% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 50.1%.
