PPI Inflation for Services Rises 4.6% in Q1

EghtesadOnline: The average Producer Price Index for the services sector (using 2011 as the base year) in the first quarter of the current Iranian year (March 21-June 21) stood at 262.3, indicating a 4.6% increase compared with the previous quarter (winter).

News ID: ۷۸۳۵۶۸

06 August 2018

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

PPI for the “repairing motor vehicles, motorcycles and home devices” subsector stood at 310.7, indicating a 3.7% rise compared with the previous quarter, according to data reported by the Statistical Center of Iran.

The index for “hotels and restaurants” was at 342.1, posting a 3.7% rise compared with the previous quarter, according to Financial Tribune.

For “transportation, storage services and communications”, it stood at 293.2, registering a 9.3% increase over the previous quarter.

It hit 278 for “brokerage financial services (insurance)”, indicating a 10.3% rise compared with the previous quarter.

The index for “real estate, leasing and business”, “education”, “health services and social work” and  “other public, social and personal services” subcategories stood at 204.6, 261.6, 384.2 and 288.8, registering a 2.4%, 0.3%, 1.4% and 5.1% increase compared to winter.

The importance of PPI lies in its predictive content for the future pattern of Consumer Price Index. Changes in PPI are usually reflected in Consumer Price Index within a short period of time.

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.