Posted on November 26, 2015

Ministry of Development Planning and Statistics (MDPS) have released the Monthly Producer Price Index (PPI) of the Industrial sector for September 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 September, 2015 shows a decline by 1.5% when compared with PPI of August 2015, primarily due to the drop in prices recorded in “Crude petroleum and natural gas” with same percentage. PPI of September 2015, when compared with its counterpart in the previous year, there has been a significant fall of 43.6%. Figure (1) shows the movement of “Mining” index during September 2014 and September 2015.

Manufacturing

A decrease of 6.2% has been observed in September, 2015, when compared with the previous month’s Manufacturing index during this year. The decreasing prices are noticed in : “Basic chemicals” by 9.7%, “Refined Petroleum Products” by 5.7%, “Other chemical products” by 5.5%, “Basic Metals” by 5.0%, “Juices” by 2.8% , “Beverages” by 2.4%, “Dairy products” by 0.3% , and “Grain mill products” by 0.2%. The price increase is seen in “Cement and other non-metallic products” by 3.1% and “Rubber and plastics products” by 0.1%. “Paper and paper products” remained unchanged at previous month’s level.

Comparing with the index of counterpart in the previous year (September 2014), “Manufacturing” PPI of September, 2015 showed a sharp decline of 33.1%. The major groups which explain this price fall are “Refined Petroleum Products” by 40.0%, “Basic chemicals” by 24.5%,"Basic Metals” by 23.8%, and “Other chemical products, man-made fibers” by 6.5%. However, prices rises are also noticed in: “Cement and other non-metallic products” by 10.0%, “Juices” by 4.4%, “Beverages” by 3.5%, and “Dairy products” by 2.6%.

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

Electricity and water

The PPI of this group showed a decrease of 2.8% compared to August 2015, resulting from the price fall seen in “Water” by 6.8%. The PPI of September, 2015, when compared to the PPI of September, 2014, showed a decrease [Y-o-Y] of 5.6%, resulting from the combined effect of price slip seen in Electricity” by 1.1% and “Water” by 11.8%.

Overall Index (PPI of Industrial sector)

The PPI for September, 2015 is estimated at 55.8 points showing a decrease of 3.0% compared to the previous month’s (August 2015), due to the decline that have been recorded in the “Mining (which includes crude and natural gas oil)” and the changes in “Manufacturing”, and “Electricity and water”. On [Y-o-Y] basis, PPI of September, 2015 shows a steep fall of 40.4% when compared to the PPI of September 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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