Posted on March 25, 2016

Ministry of Development Planning and Statistics (MDPS) have released the Monthly Producer Price Index (PPI) of the Industrial sector for January 2016 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 PPI of January, 2016 shows a fall of 11.4% when compared with PPI of December 2015, primarily due to the decreased in prices of “Crude petroleum and natural gas”. PPI of January 2016, when compared with its counterpart in the previous year, there has been a significant fall of 39.5%. Figure (1) shows the movement of “Mining” index during January 2015 and January 2016.

Manufacturing

A decrease of 4.2% has been observed in January, 2016, when compared with the previous month’s Manufacturing index during this year. The decreasing prices are noticed in “Refined Petroleum Products” by 5.8%, “Basic Metals” by 4.4%, “Basic chemicals” by 1.4%. However, the prices increase are seen in : “Juices” by 9.8%, “Other chemical products” by 4.9%, “Beverages” by 0.6%, “Cement and other non-metallic products” by 0.5%,and “Grain mill products” by 0.1%, and no change noticed in %,“Rubber and plastics products” and Paper and Paper Products.

Comparing with the index of counterpart in the previous year (January 2015), “Manufacturing” PPI of January, 2016 showed a sharp decline of 18.7%. The major groups which explain this price fall are ”Basic Metals” by 27%, “Basic chemicals” by 20.8%, “Refined Petroleum Products” by 18.6%,“Dairy products” by 5.4%,“Rubber and plastics products” by 4.2%, “Other chemical products” by 2.1%, and “Beverages” by 0.1%. However, prices rise are also noticed in: “Cement and other non-metallic products” by 6.4%, “Juices” by 17.5%,

Figure (2) shows the graphical presentation of “Manufacturing” index during January, 2015-2016.

Electricity and water

The PPI of this group showed an increase of 5.2% compared to December 2015, resulting from the rising price seen in “Water” by 6.4% and “Electricity” by 4.2%. When compared the PPI of January, 2016, to the PPI of January, 2015, showed an increase [Y-o-Y] of 3.5%, resulting from the price rising in “Electricity” by 3.9% and “Water” by 2.6%.

Overall Index (PPI of Industrial sector)

The PPI for January, 2016 is estimated at 45 points showing a decrease of 8.7% compared to the previous month’s December 2015), due to the decline that have been noticed in the “Mining (which includes crude oil and natural gas)”, “Manufacturing”, and an increase in “Electricity and water”. On [Y-o-Y] basis, PPI of January, 2016 shows a steep fall of 32.9% when compared to the PPI of January 2015.

More details on monthly/annual comparison of indices are available in Table (1) and figures (3) and (4). 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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