The overall Monthly Producer Price Index (PPI) of the Industrial sector for November was estimated at 50.1 points, showing an increase of 0.4 percent compared to October 2016 due to increase in “Manufacturing”, and “Electricity & Water” sectors, data released by the Ministry of Development Planning and Statistics (MDPS) show.
However, when compared on year-on-year basis(Y-o-Y), the PPI of November 2016 showed a fall of 5.3 percent compared to the PPI of corresponding month in 2015. The PPI covers goods relating to “Mining” having a weightage of 72.7 percent, “Manufacturing” with a weightage of 26.8 percent and “Electricity & Water” weightage of 0.5 percent.
The PPI of November 2016 for Mining sector showed a decrease of 1.1 percent when compared with PPI of October 2016 (for the same sector), primarily due to the decrease in prices of “Crude petroleum and natural gas”. PPI of November 2016, when compared with its counterpart in the previous year, there has been a significant fall of 6 percent. In the Manufacturing sector PPI, an increase of 3.5 percent has been recorded in November, 2016, when compared with the previous month’s (October 2016) Manufacturing index. The prices increase were seen in: “Refined Petroleum Products” by 5.1 percent, “Basic Chemicals” by 2.8 percent, "Other Chemical products” by 1.9 percent, “Juices” by 1.7 percent, “Rubber and Plastics products” by 1.2 percent, “Cement and other Non-metallic products” by 0.5 percent, and “Beverages” by 0.3 percent.
However, decrease in prices, with varying degrees, were noticed in “Dairy Product” by 1.8 percent, “Basic Metals” by 1.6 percent, and “Grain mill and Other products” by 0.1 percent. No change noticed in “Paper and Paper Products”.
When compared on y-o-y basis, the “Manufacturing” sector’s PPI of November 2016 showed a decline of 3.8 percent against the PPI of November 2015. The fall in the index was attributed to decline in the prices of major groups: “Basic Chemicals” by 11.7 percent, ”Basic Metals” by 10.7 percent, “Cement and other Non-metallic products” by 1.1 percent, “Refined Petroleum Products” by 0.3 percent. However, surge in prices were also noticed in “Other Chemical products” by 18.2 percent, “Juices” by 14.0 percent, “Rubber and Plastic product” by 10.4 percent, and “Beverages” by 2.1 percent, “Dairy products” by 1.8 percent, and Grain Product” by 0.8 percent, No change noticed in “Paper and Paper Products”. The PPI of Electricity and Water showed an increase of 1.3 percent compared to October 2016, resulting from the increasing price noticed in “Electricity” by 3.9 percent, and decreasing in “Water” by 1.6 percent.
