Central Bank of Iran Puts Producer Inflation at 44.4% (Sep 2018)

EghtesadOnline: An increase of 44.4% was registered in the Producer Price Index in the Iranian month of Shahrivar (Aug. 23-Sept. 22) compared with the similar month of last year, the latest report of the Central Bank of Iran announced.

News ID: ۷۸۴۱۵۹

10 October 2018

The PPI (using Iranian year to March 2017 as the base year for the first time) stood at 157.8 in Shahrivar, indicating a 9.4% rise compared with the previous month.

The average PPI in the 12 months ending Sept. 22 grew by 18.2% compared with last year’s corresponding period. The CBI put the preceding month’s PPI inflation at 15.2%.

Out of eight main groups, the “Industry” group registered the highest growth in month-on-month producer price index with 13.9% and a year-on-year increase of 61.1% in Shahrivar, Financial Tribune reported.

“Agriculture, Forestry and Fishing” group posted an MOM rise of 8.1% and a YOY increase of 37%.

“Transportation and Warehousing” group saw a month-on-month PPI rise of 4.2% and a YOY increase of 36.5%.

PPI for the “Hotel and Restaurant” group had an MOM increase of 6.8% and a YOY growth of 23.7%.

The MOM rate for “Education” group was at 0.6%, as the YOY rate stood at 14.5%.

“Health and Social Work” group recorded an MOM rise of 1.8% and a YOY increase of 15.7%.

The group categorized as “Other Public, Social, and Individual Services” registered an MOM rise of 3.1% and a YOY rise of 19%.

The lowest MOM and YOY growth was registered in the PPI of “Information and Communications” group with 0% and 0.9% respectively.

The MOM producer price index of the exclusive group of “Services” grew 3%, as its YOY rate increased by 25.4%.

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 Aug. 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%.