Posted on October 25, 2015

Ministry of Development Planning and Statistics (MDPS) have released the Monthly Producer Price Index (PPI) of the Industrial sector for August, 2015 with the base year 2013. Producer price index covers goods relating to “Mining” (weight: 72.7%), “Electricity & Water” (weight: 0.5%) and “Manufacturing” (weight: 26.8%).

Mining

The Index of this group in August, 2015 shows a decline by 9.5% when compared with PPI of July 2015, primarily due to the drop in prices recorded in “Crude petroleum and natural gas” by the same percentage. PPI of August 2015, when compared with its counterpart in the previous year, there has been a steep fall of 44.5%. Figure (1) shows the movement of “Mining” index during August 2014 and August 2015.

Manufacturing

A decrease of 3.5% has been observed in August, 2015, compared with the previous month’s Manufacturing index during this year. The decreases in prices are noticed in: “Refined Petroleum Products” by 5.6%, “Basic Metals” by 3.6%, “Other chemical products” by 1.2%, “Rubber and plastics products” and “Cement and other non-metallic products” groups by 0.7% each and “Grain mill products” by 0.1%. The price increase is seen in “Basic chemicals” and “Beverages” by 1.7% and “Dairy products” by 0.9%. “Paper and paper products” and “Juices” products remain unchanged at previous month’s level.

Comparing with the index of counterpart in the previous year (August 2014), “Manufacturing” PPI of August, 2015 shows a sharp decline of 29.6%. The major groups which explain this price fall are: “Refined Petroleum Products” by 37.8%, "Basic Metals” by 18.0%, “Basic chemicals” by 16.5%. However, prices rises are also noticed in “Juices” by 11.3%, “Cement and other non-metallic products” and “Dairy products” by 6.6%, “Beverages” by 4.9%, and in “Grain mill products” by 0.8%. Figure (2) shows the graphical presentation of “Manufacturing” index during August, 2014-2015.

Monthly Producer Price Index 2 [qatarisbooming.com].jpg

Electricity and water

The PPI of this group shows a decrease of 0.3% compared to July 2015, resulting from the price fall seen in “Electricity” by 0.1% and “Water” by 0.7%. The PPI of August, 2015, when compared to the PPI of August, 2014, shows a decrease [Y-o-Y] of 3.0%, resulting from the combined effect of price slip seen in Electricity” by 1.5% and “Water” by 5.2%.

Overall Index (PPI of Industrial sector)

 The PPI for August, 2015 is estimated at 57.5, showing a decrease of 7.6% compared to the previous month’s (July 2015) index, due to the decline that have been recorded in all the three major groups: “Mining (which includes crude and natural gas oil)”, “Manufacturing”, and “Electricity and water” as explained above. On [Y-o-Y] basis, PPI of August, 2015 shows a steep fall of 40.2% when compared to the PPI of August 2014.

More details on monthly/annual comparison of indices are available in Table (1) and figures (3) and (4) of the Press Release. Further detailed data and indices would be available on the Ministry’s website, www.mdps.gov.qa and Qatar Information Exchange, www.qalm.gov.qa.

click here to view the tables and figures

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