Posted on August 03, 2015

Ministry of Development Planning and Statistics (MDPS) has released the Monthly Producer Price Index (PPI) of the Industrial sector for May 2015. This is the second monthly PPI release of the new producer price index series calculated 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%). Four new sub-groups have been added to the “Manufacturing” group of this new series. These are: “Juices”, “Pulp & paper products”, “Other chemical products”, and “Rubber & plastic products”. Compared with April 2015, PPI the “Mining” group PPI of May, 2015 show an increase of 3.4%, primarily due to the rising prices recorded in “Crude petroleum and natural gas”.  PPI of May, 2015, when compared with its counterpart in the previous year, there was a significant decline by 40.3%. Figure (1) shows the movement of “Mining” index during May 2014 and May 2015.

For the “Manufacturing “group PPI, there has been an increase by 2.9% in May, 2015, when compared with the previous month’s index of this year. The increasing prices show up in “Basic chemicals” by 5.4%,“Refined Petroleum Products” by 2.9%,“Other chemical products” by 1.3%, and “Cement and other non-metallic products” by 0.4%. On the other hand price decrease is noticed in: “Juices” and “Beverages” by 0.1%.each, “Dairy products” by 0.2%, “Rubber and plastics products” by 0.4%, and “Basic Metals” by 0.3%.

Monthly Producer Price Index of 2 [qatarisbooming.com].jpgComparing with the counterpart in the previous year (May 2014), “Manufacturing” PPI of May, 2015 shows a decline of 25.5%. The major groups which explain this price fall are “Refined Petroleum Products” by 31.0%, “Basic chemicals” by 19.7%, "Basic Metals” by 14.9%, However, prices rises are noticed in: “Dairy products” by 6.9%,“Beverages” by 5.9%,“Cement and other non-metallic products” by 5.3%, and “Juices” by 3.1%. Figure (2) shows the graphical presentation of “Manufacturing” index during May, 2014-2015.

The PPI of “Electricity and water” shows a decrease of 0.7% compared to April 2015, resulting from the price fall seen in Electricity by 1.3%.However Water prices slightly increase by 0.1%. The PPI of May, 2015, when compared to the PPI of May, 2014, shows an increase [Y-o-Y] by 2.3%, resulting from the combined effect of price rise seen in Electricity and Water by2.4% each. Based on the changes that have been recorded in the three major groups namely: “Mining (which includes crude and natural gas oil)”, “Manufacturing”, and “Electricity and water”, the PPI for May, 2015 is estimated at 64.2, showing an increase of3.2% from the previous month (April 2015), PPI’s index a decrease of 36.2% from the PPI of corresponding month in the previous year (May 2014).

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

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