Posted on December 23, 2015

Ministry of Development Planning and Statistics (MDPS) have released the Monthly Producer Price Index (PPI) of the Industrial sector for October 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 PPI of October, 2015 shows stability when compared with PPI of September 2015, primarily due to the unchanged in prices of “Crude petroleum and natural gas”. PPI of October 2015, when compared with its counterpart in the previous year, there has been a significant fall of 38.7%. Figure (1) shows the movement of “Mining” index during October 2014 and October 2015.

Manufacturing

An increase of 0.8% has been observed in October, 2015, when compared with the previous month’s Manufacturing index during this year. The increasing prices are noticed in : “Refined Petroleum Products” by 1.7%, “Cement and other non-metallic products” by 1.3%, “Beverages” by 0.9%, “Juices” by 0.4%, and “Grain mill products” by 0.2%. The price decrease is seen in “Basic Metals” by 1.8%, “Basic chemicals” by 1.0%. “Dairy products” by 0.8%, and “Other chemical products” by 0.7%.

Comparing with the index of counterpart in the previous year (October 2014), “Manufacturing” PPI of October, 2015 showed a sharp decline of 30.8%. The major groups which explain this price fall are “Refined Petroleum Products” by 36.1%,”Basic Metals” by 26.2%, “Basic chemicals” by 25.8%, and “Other chemical products, man-made fibers” by 6.4%. However, prices rises are also noticed in: “Cement and other non-metallic products” by 10.7%, “Juices” by 4.7%, “Beverages” by 4.5%, and “Dairy products” by 1.7%.

Figure (2) shows the graphical presentation of “Manufacturing” index during October, 2014-2015.

Electricity and water

The PPI of this group showed a decrease of 1.0% compared to September 2015, resulting from the combined effect of price fall seen in “Electricity” by 3.1% and rising price of “Water” by 2.3%. The PPI of October, 2015, when compared to the PPI of October, 2014, showed a decrease [Y-o-Y] of 7.2%, resulting from the price slip seen in “Electricity” by 4.5%, and “Water” by 11.2%.

Overall Index (PPI of Industrial sector)

The PPI for October, 2015 is estimated at 55.9 points showing an increase of 0.2% compared to the previous month’s (September 2015), due to the stability that have been noticed in the “Mining (which includes crude and natural gas oil)”, an increase in “Manufacturing”, and a decline in “Electricity and water”. On [Y-o-Y] basis, PPI of October, 2015 shows a steep fall of 36.2% when compared to the PPI of October 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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