Producer Price Inflation at 36.7% in Fiscal 2019-20

EghtesadOnline: The Producer Price Index in the four-quarter period ending March 19, 2020, which marks the end of the fourth quarter of the last Iranian year, grew by 36.7% compared with the corresponding period of the year before.

News ID: ۷۵۰۱۰۲

21 May 2020

The index calculated for the period leading to Dec. 21, marking the end of Q3 of last fiscal year, had increased by 50%.

The lowest and highest annual producer inflation was registered for electricity and mining sectors with -4% with 45.1%, respectively, the Statistical Center of Iran reported.

The PPI (using fiscal 2011-12 as the base year) stood at 474.2 in Q4 (Dec. 22, 2019-March 19), indicating a 0.3% decrease compared with the previous quarter and a 15% growth over the same quarter of the year before.

The lowest quarter-on-quarter producer inflation was registered for "agronomy and horticulture" with -28.6% and the highest was posted by "services" with 4.1%.

In the fourth quarter of last year, "electricity" posted the lowest PPI of -7.1% and mining registered the highest PPI of 33.3% compared with the same quarter of the year before.

Mining

The average PPI for the mining sector in the four-quarter period ending March 19, 2020, increased by 45.1% compared with the same period of last year.

The sector’s average PPI for the four-quarter period to Dec. 21, end of Q3, had increased by 52% year-on-year.

The average annual producer inflation of the “iron ore extraction” subsector in Q4 was at 104.4% and those of “extraction of metal ores” and “extraction of other mines” subsectors were at 43.1% and 36.8%, respectively.

The overall PPI of mining sector stood at 541.2 in Q4, indicating a 3.4% increase compared with the previous quarter and a 33.3% growth over the same quarter of the year before.

The quarter-on-quarter producer inflation of the “iron ore extraction” subsector was at 1.8% in winter and those of the “extraction of metal ores” and “extraction of other mines” subsectors were at 4.1% and 1%, respectively.

The year-on-year producer inflation of the “iron ore extraction” subsector was 105.8% and those of the “extraction of metal ores” and “extraction of other mines” subsectors were 29.3% and 31.2%, respectively.

Industries

The overall PPI of the industrial sector stood at 543.6 in Q4, indicating a 1.8% increase compared with the previous quarter and 13.3% growth over the same quarter of the year before.

The lowest quarterly PPI inflation rates were recorded for “coal production industries-oil refineries” subsector with -6.9%, “radio, television, and telecommunication devices” with 0% and “tobacco production” with 0%.

The highest quarterly PPI inflation rates were posted for “base metals” with 21.6%, chemical industries with 8.9% and “production of office machinery” with 8.6%.

The industrial PPI in the four-quarter period ending March 19 grew by 41.8% compared with the same period of the year before, SCI said.

The sector’s PPI for the four-quarter period to Dec. 21, 2019, which marked the Q3 end of last Iranian year, increased by 61.5%.

The lowest year-on-year PPI inflation rate was registered for “coal production industries-oil refineries” subsector with -12.1% and the highest increase was posted by “production of office machinery” with 137.8% compared with the same quarter of the year before.

The lowest annual PPI inflation was recorded by “tobacco production” with 28.6% and the highest increase was reported for “production of office machinery” with 131%.

Services

The overall PPI for the services sector stood at 412.6 in Q4, indicating a 4.1% increase compared with the preceding quarter and a 25.6% rise compared with last year's same quarter.

Services PPI is calculated based on the indexes of eight subsectors, namely “repairing motor vehicles, motorcycles and home devices”, “hotels and restaurants”, “transportation, warehouse services and communications”, “brokerage (insurance) services”, “real estate, renting and business”, “education”, “health services and social work” and “other public, social and personal services”.

PPI for “repairing motor vehicles, motorcycles and home devices” stood at 530.8, indicating a 4.4% rise compared with the previous quarter and a 31.5% growth compared with the same quarter of the year before.

The index for “hotels and restaurants” stood at 656.5, posting a 4.5% rise quarter-on-quarter and a 38.3% rise year-on-year.

For “transportation, warehousing services and communications”, PPI stood at 538, registering a 5.5% growth QOQ and a 32.4% increase YOY.

For “financial brokerage (insurance)”, it was at 381.8, indicating a 1.8% rise compared with the previous quarter and a 23% increase compared with the same quarter of the year before.

“Real estate, renting and business” saw the PPI stand at 270.1, registering a 3.2% rise QOQ and 15.1% increase YOY.

For “education”, the index was at 3371, posting a 0.7% rise compared with the previous quarter and 20% increase compared with the same quarter of the year before.

“Health services and social work” had a PPI of 568.1, indicating a 4.4% rise over the preceding quarter and a 26% increase over the same quarter of the year before.

The PPI measured for the subsector of “other public, social and personal services” stood at 426.4, showing a 5.4% growth compared with previous quarter and a 26.9% increase over the same quarter of the year before.

Electricity and Industrial Livestock Farms

PPI for the electricity sector in the four-quarter period ending March 19 decreased by 3.96% compared with the same period of the year before.

The sector’s PPI stood at 106.83 in Q4, indicating a decline of 7.07% compared with the same quarter of the year before.

The average PPI for industrial-scale livestock farms in the four-quarter period ending March 19 increased by 36.16% compared with the preceding year's corresponding period.

The PPI stood at 500.17 in the fourth quarter of last Iranian year, indicating a 1.3% decrease compared with the preceding quarter.

North Khorasan posted the sharpest deflation with 15.08% compared with the preceding quarter while Chaharmahal-Bakhtiari Province posted the highest quarter-on-quarter producer inflation with 6.14%.

The Q4 index registered an increase of 3.96% compared with the same quarter of the year before.

East Azarbaijan posted the sharpest year-on-year producer deflation of 7.85% while Kohgilouyeh-Boyerahmad Province registered the highest year-on-year producer inflation with 21.47% in Q1.

Industrial Chicken Farms

The average PPI for industrial chicken farms in Q4 decreased by 7% compared with the corresponding quarter of the year before.

The overall PPI for the sector in winter stood at 498.66, indicating a 7.16% decline compared with the preceding quarter.

During the four-quarter period ending March 19, the PPI increased by 19.36% compared with the similar period of the year before. The index grew 42.23% in the four-quarter period ending Dec. 21, 2019.

The highest quarter-on-quarter increase of the index among Iranian provinces during the period under review was registered in Chaharmahal-Bakhtiari Province with 57.83% and the sharpest producer deflation was recorded in Gilan with 48.49%.

On a year-on-year basis, Chaharmahal-Bakhtiari Province also registered the highest increase with 96.37% and Gilan posted the biggest deflation with 43.24%.

Agronomy, Horticulture and Traditional Husbandry

The PPI for the “agronomy, horticulture and traditional husbandry” group in the four-quarter period to March 19, 2020, increased by 32.9% compared with the corresponding period of the year before.

The overall PPI of this group stood at 379 in Q4, indicating a 2.8% increase compared with the same quarter of the year before.