Q2 Services PPI Inflation Hits Record High of 45.1%

EghtesadOnline: The average Producer Price Inflation for the services sector in the four-quarter period ending Sept. 22, which marks the end of the second quarter of the current Iranian year, increased by 45.1% compared with the same period of the year before.

News ID: ۷۸۷۲۵۴

03 November 2021

According to the Statistical Center of Iran, this marks the highest annual inflation since winter 2013 (the earliest available data on services producers' inflation on SCI’s website).

The overall PPI for the services sector stood at 358.7 in Q2 of the current fiscal year (June 22-Sept. 22), indicating an 11.1% increase compared with the preceding quarter.

The index indicates a 47.8% increase compared with the same quarter of the year before.

Services PPI is calculated based on the indexes of 13 subsectors, namely “water networks, wastewater management and wastewater treatment” with a coefficient of 1.2%, “repairing motor vehicles and motorcycles” with 2.8%, “transportation and warehouse services” with 23.2%, “services related to accommodation and food” with 4.8%, “information and communications” with 8.5%, “insurance services” with 1.7%, “real-estate services” with 26.8%, “professional, scientific and technical activities” with 3%, “administrative and support services” with 1.7%, “education” with 9.3%, “social services” with 14.2%, “art, entertainment and leisure” with 1.1%, and “services categorized as others” with 1.8%.

For “water networks, wastewater management and wastewater treatment”, PPI stood at 204.9 in Q2, indicating an respective increase of 3% and 25.6% compared with the previous quarter and the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period ending Sept. 22 increased by 12.7%.

PPI for “repairing motor vehicles and motorcycles” stood at 567.8, indicating a 12% rise compared with the previous quarter and a 66% growth compared with the same quarter of the year before. The average PPI for the subsector in the four-quarter period ending Sept. 22 surged by 65.3%.

The index for “transportation and warehouse services” stood at 421.8, posting a 10.8% rise quarter-on-quarter and a 54.9% rise year-on-year. The average annual PPI for the subsector in the four-quarter period jumped by 56.4%.

For “services related to accommodation and food”, PPI stood at 723.7, registering a 16.3% increase QOQ and an 87.1% increase YOY. The average annual PPI for the subsector in the four-quarter period increased by 76.2%.

For “information and communications”, it stood at 242, indicating a 4.2% rise compared with the previous quarter and a 23.5% increase compared with the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 22.8%.

“Insurance services” saw the PPI stand at 232.7, registering a 11.1% rise QOQ and a 42.5% increase YOY. The average annual PPI for the subsector in the four-quarter period increased by 28.5%.

For “real-estate services”, the index was at 216.8, posting a 7.5% rise compared with the previous quarter and a 24.8% increase compared with the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 25%.

“Professional, scientific and technical activities” had a PPI of 292.9, indicating a 6.1% rise over the preceding quarter and a 33.8% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 40.5%.

The PPI measured for the subsector of “administrative and support services” stood at 629.5, showing a 12.7% growth compared with the previous quarter and a 77.1% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 70.3%.

“Education” recorded a PPI of 278.7, indicating a 5.1% rise over the preceding quarter and a 29.4% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 29.5%.

For “social services”, PPI stood at 474, indicating a 17.8% rise compared with the previous quarter and a 58.3% increase compared with the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 51%.

“Art, entertainment and leisure” had a PPI of 377.5, indicating a 13.9% rise over the preceding quarter and a 46.7% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 41.9%.

And, “services categorized as others” registered a PPI of 470.4, indicating a 10.7% rise over the preceding quarter and a 53.8% increase over the same quarter of the year before. The average annual PPI for the subsector in the four-quarter period increased by 51.3%.