Economy, Domestic Economy

PPI at 19%

PPI at 19%PPI at 19%

The change in the producer price index (PPI) dropped to 19 percent year on year in the month of Mehr (September 23-October 22), the smallest amount since the fiscal year started on March 21, Central Bank of Iran (CBI) reported on Thursday.

The PPI in the month ending October 22 stood at 206.6 points, which shows a 14 percent hike compared to the same month last year, said Alireza Motaghai, the deputy governor for economic statistics in CBI, on Thursday.

“The month on month percentage change in PPI is 0.2 percent, the smallest increase in the current calendar year (starting March 21, 2014),” he added.

The PPI measures the average change over time in the selling prices received by domestic producers for their output and influences the consumer price index (CPI) within an interim interval. CPI is interpreted as “inflation”, however, in journalism PPI is also referred to as “secondary inflation” and “leading indicator” since it can provide a forecast on the future of CPI. Thus, any decline in PPI can reduce expectations of inflation on the part of the consumer.

The CBI publishes the monthly PPI in 5 working days and releases the CPI in 8 days after the last day of each month.