The Producer Price Index for the industrial sector in the four-quarter period ending June 21, which marks the end of the first quarter of the current fiscal year, grew by 48% compared with the corresponding period of the year before, the Statistical Center of Iran reported.
The PPI of the sector stood at 768.9 in Q1, indicating a 12.5% increase compared with the previous quarter and 46.3% growth over the same quarter of the year before.
The lowest quarterly PPI inflation rates in Q1 were recorded for “production of base metals” with 2.5%, “production of computer, electronic and lighting products” with 4.9% and “production of chemicals” with 7.7%. The highest quarterly PPI inflation rates were posted for “production of food products” with 44.9%, “production of beverages” with 28.7% and “printing and duplicating the recorded media” with 24.4%.
The lowest year-on-year PPI inflation rate was registered for “production of computer, electronic and lighting products” with 17.1%, “production of base metals” with 20.1% and “production of pharmaceuticals, chemicals used in pharmacy and herbal remedies” with 27.7%. The highest year-on-year increase was posted by “production of food products” with 93.3, “other non-metallic minerals” with 65.2%, and “production of coke and oil refining products” with 56.8% compared with the same quarter of last year.
The lowest annualized PPI inflation was recorded by “production of computer, electronic and lighting products” with 27.3%, “production of tobacco” with 29.7% and “production of pharmaceuticals, chemicals used in pharmacy and herbal remedies” with 31.3%. The highest annual PPI was recorded by “other non-metallic minerals” with 67%, “production of food products” with 64.9% and “printing and duplicating the recorded media” with 60.4%.
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.
