PPI Inflation at 9.4%

EghtesadOnline: The average Producer Price Index in the 12 months ending Nov. 21, which marks the end of the Iranian month of Aban, increased by 9.4% compared with last year’s corresponding period, according to the latest report by the Central Bank of Iran.

News ID: ۷۸۰۸۰۳

13 December 2017

The CBI put the preceding month’s PPI inflation at 8.9%.

A year-on-year increase of 11.3% was registered in the index compared with the similar month of last year. The PPI (using Iranian year to March 2012) stood at 252.2 in Aban, indicating a 0.6% rise compared with the previous month.

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, Financial Tribune reported.

PPI gauges the price fluctuations of goods and services for the producer whereas CPI measures changes in the price level of a basket of consumer goods and services purchased by households.

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 Nov. 21, which marks the end of the Iranian month of Aban, increased by 9.9% year-on-year, the latest report released by the Central Bank of Iran showed.

CBI had put the inflation rate for the preceding month of Mehr, which ended on Oct. 22, at 9.8%. The overall CPI (using the Iranian year to March 2017 as the base year) stood at 109.8 in Aban, indicating a 1.3% increase compared with the previous month. The index registered a YOY increase of 9.6% compared with the similar month of last year.

The CBI report came after the Statistical Center of Iran put Aban inflation at 8.4%.