PPI Inflation Uptrending

EghtesadOnline: The average Producer Price Index in the 12 months ending Aug. 22, which marks the end of the Iranian month of Mordad, increased by 15.2% compared with last year’s corresponding period, the latest report of the Central Bank of Iran announced.

News ID: ۷۴۵۹۶۱

03 September 2018

CBI put the preceding month’s PPI inflation at 13.1%.

PPI (using Iranian year to March 2017 as the base year for the first time) stood at 144.2 in Mordad, indicating a 6.3% rise compared with the previous month.

A year-on-year increase of 33.8% was registered in the index compared with the similar month of last year, Financial Tribune reported.

Out of the eight main groups, “Industry” registered the highest growth in the monthly producer price index with 7.2% and a year-on-year increase of 45.2%.

“Agriculture, Forestry and Fishing” posted a monthly rise of 7.1% and a YOY increase of 26.3%

“Transportation and Warehousing” indicated a monthly PPI rise of 6.7% and a YOY increase of 31.3%.

The monthly PPI increase for “Hotel and Restaurant” was 3.8% and its YOY growth was 16.9%.

The monthly PPI of “Education” increased by 0.3% and its year-on-year PPI grew 14.3%.

“Health and Social Work” also recorded the monthly rise of 3.3% and a YOY increase of 15.3%.

The group categorized as “Other Public, Social and Individual Services” registered a monthly rise of 1.4% and a YOY rise of 16.7%.

The lowest monthly and YOY growths were registered in the PPI of “Information and Communications” with 0% and 0.8%, respectively.

The monthly PPI of the exclusive group “Services” grew 4.7% and its year-on-year PPI increased 22.4%.

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.

The central bank’s latest data on CPI show the average goods and services Consumer Price Index for urban areas in the 12 months ending August 22 increased by 11.5% compared with last year’s corresponding period.

CBI had put the inflation rate for the preceding month at 10.2%.

The overall CPI (using the Iranian year to March 2017 as the base year) stood at 133.8 in Mordad, indicating a 5.5% increase compared with the previous month. The index registered a year-on-year increase of 24.2% compared with the similar month of last year.

The CBI report came after the Statistical Center of Iran put Mordad inflation at 9.7%.