The Producer Price Index for Iran’s industrial sector in the four-quarter period ending Sept. 22, which marks the end of the second quarter of the current fiscal year (summer), grew by 40.4% compared with the corresponding period of the year before.
The PPI of the sector stood at 750.9 in Q2, indicating a 2.3% increase compared with the previous quarter and a 30.1% growth over the same quarter of the year before, the Statistical Center of Iran reported.
The lowest annualized PPI inflation was recorded by “production of computer, electronic and lighting products” with 21.2%, “production of motor vehicles, trailers, semi-trailers” with 29.5% and “production of uncategorized machinery and other equipment” with 29.9%.
The highest annual PPI was recorded by “production of food products” with 71.2%, “other non-metallic minerals” with 58.2% and “printing and duplication of recorded media” with 57.1%.
The lowest quarterly PPI inflation rates in Q1 were recorded for “production of textiles” with 1.7%, “production of uncategorized machinery and other equipment” with 2.3% and “production of motor vehicles, trailers, semi-trailers” with 2.4%. The highest quarterly PPI inflation rates were posted for “production of pharmaceuticals, chemicals used in pharmacy and herbal remedies” with 23.2%, “printing and duplication of recorded media” with 11.1% and “production of wood products (except furniture and products made from straw and mat weaving materials)” with 9%.
The PPI of the industrial sector stood at 750.9 in Q2, indicating a 2.3% increase compared with the previous quarter and 30.1% growth over the same quarter of the year before
The lowest year-on-year PPI inflation rate was registered for “production of computer, electronic and lighting products” with 17.2%, “production of uncategorized machinery and other equipment” with 25% and “production of wood products (except for furniture, goods from straw and mat weaving materials)” with 29.5%. The highest year-on-year increase was posted by “production of food products” with 80.7%, “printing and duplication of recorded media” with 53.8%, and “production of beverages” with 50.9% compared with the same quarter of last year.
The PPI measures price movements from the viewpoint of the seller. Conversely, the consumer price index measures cost changes from the viewpoint of the consumer. In other words, this index tracks changes in production cost.
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.
According to the Statistical Center of Iran, over 8.02 million Iranians were employed in the industrial sector in Q2, unchanged year-on-year.
As a result, the sector employed 33.8% of the Iranian employed population (11.97 million) during the period.
A total of 7.09 million men and 932,798 women were working in the industrial sector in summer.
The industrial sector comprised 35.4% or 6.32 million of the jobs in urban areas and comprised 29.3% or 1.7 million of employment in rural areas.
