Posted on October 26, 2014

Ministry of Development Planning and Statistics (MDPS) has released the Monthly Producer Price Index (PPI) of the Industrial sector for August 2014 which covers Mining, Electricity & Water and Manufacturing activities. This indicator is a measure of the average selling prices received by domestic producers for their output. The PPI for August, 2014 stands at 163.9, which shows a decrease of 2.0% over the PPI of July 2014; and 7.5% (year-on-year) when compared to the PPI of August 2013.

Compared with July 2014, the breakdown of the overall PPI for August, 2014 by main groups show a decline of 1.8% in  “Mining” group (with a weight of 77%),the decreasing price shows up in Crude petroleum and natural gas by same percentage. “Manufacturing” group PPI (with a weight of 21%)shows a fall of 3.0%.The decreasing prices shows up in Refined Petroleum products by 4.2%, Basic Chemicals by 1.6%, Dairy products by 1.5%, Basic metals by 1.3%.“Grain mill and other products”, by 0.4%,and “Cement and other “non-metallic products”groups are decreased by the same percentage 0.4%.An increase is noticed in “Beverages” group by 1.0%.

The PPI of “Electricity and water” group (with 2.0% weightage) shows a decline of 3.3%%, resulting from the effect of price fall seen in  Electricity by 4.9% and Water by 0.6%.

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The overall PPI of August, 2014, compared to the PPI of August, 2013, has decreased (year-on year) by 7.5%. The “Mining” group PPI shows a dropped by 7.7%, primarily due to the price decrease seen in “Crude petroleum and natural gas” by  the same percentage. The “Manufacturing” group PPI shows a decline of 7.1% in August, 2014, when compared to the PPI of August, 2013. The major groups which explain this price fall are “Refined Petroleum Products” by 9.8%, “Basic Metals” by 4.3%,“Basic chemicals” by 2.9%,“Beverages” by 1.3% and “Grain mill and other products” by 0.8%.However, prices rise are noticed in “Dairy products” by 2.2%,and “Cement and other non-metallic products” by 0.1%.

The PPI for “Electricity & Water” shows a decrease of 3.0%, resulting from the effect of price fall seen in Water by 5.0%and Electricity by 1.8%. Further details on monthly/annual comparison of indices are available in Table (1) and figures (1) and (2) of the Press Release, and more detailed data and indexes are available on the Ministry’s website: and QALM:

Click here to view the tables and graphs.