Agro PPI Inflation at 58.5% in 2nd Quarter
EghtesadOnline: The Producer Price Index for the agriculture sector (agronomy, horticulture and traditional husbandry) in the four-quarter period to Sept. 22, which marks the end of the second quarter of the current Iranian year, increased by 58.5% compared with the year before, new data released by the Statistical Center of Iran show.
The center had put producer inflation of the four-quarter period leading to June 21 (Q1) at 65.8%.
The overall PPI of this group (using the year ending March 2017 as the new base year) stood at 838.8 in Q2, indicating a 56.3% increase compared with the same quarter of the year before.
Year-on-year producer inflation of the previous quarter had increased by 66.2%.
PPI measures price movements from the seller's point of view. Conversely, the consumer price index measures cost changes from the viewpoint of the consumer. In other words, this index tracks changes to the cost of production.
The importance of PPI lies in its predictive content for the future pattern of Consumer Price Index. Changes in PPI are usually reflected in CPI within a short period of time.