Q2 PPI Inflation Hit 64.6%

EghtesadOnline: The Producer Price Index in the four-quarter period ending Sept. 22, which marks the end of the second quarter of the current Iranian year, grew by 64.6% compared with the corresponding period of last year.

News ID: ۷۸۷۳۸۲

06 December 2021

The lowest and highest annualized producer inflation rates were registered for “production, transmission and distribution of electricity” and “mining” with 37.7% and 116.1%, respectively.

PPI (using fiscal 2016-17 as the base year) stood at 468.5 in the second quarter (June 22-Sept. 22), indicating a 11.7% increase compared with the previous quarter and 58.9% growth over the same quarter of last year, the Statistical Center of Iran reported.

The lowest and highest quarter-on-quarter producer inflation rates were registered by “production, transmission and distribution of electricity” with 0.1% and agriculture with 21.7%, respectively.

Compared with the same quarter of last year, “production, transmission and distribution of electricity” posted the lowest PPI of 19% and mining registered the highest PPI of 101.6% in the second quarter.

Services

The overall PPI for the services sector stood at 358.7 in Q2, indicating an 11.1% increase compared with the preceding quarter.

The index measured for Q1 producer inflation in the services sector indicates a 47.8% increase compared with the same quarter of the year before.

The services PPI is calculated based on the indexes of 13 subsectors, namely “water networks, wastewater management and 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 work 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 a 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 reached 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 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%.

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%.

Industry

The overall PPI of the industrial sector reached 577 in Q2, indicating a 9.8% increase compared with the previous quarter and a 63.3% growth over same quarter of the year before.

The industrial PPI in the four-quarter period ending Sept. 22 grew by 80.4% compared with the same period of the year before.

The lowest quarterly PPI inflation rates in Q2 were recorded for “production of computer, electronic and lighting products” with 3.2% and “production of paper and paper products” with 3.9% and “production of tobacco” with 4%. The highest quarterly PPI inflation rates were posted for “production of wood and wood products” with 22.4%, “production of other non-metallic mineral products” with 19.5% and “production of food products” with 13.3%.

The lowest year-on-year PPI inflation rate was registered for “production of tobacco” with 24.8%, “manufacture of motor vehicles, trailers and semi-trailers” with 39% and “production of pharmaceuticals, chemicals used in pharmacy and herbal remedies” with 40.1%. The highest year-on-year increase was posted by “production of wood and wood products” with 99.2%, “manufacturing of chemicals” with 88.6% and “production of other non-metallic mineral products” with 78.4% compared with the same quarter of last year.

The lowest annual PPI inflation was recorded by “production of tobacco” with 22.7%, “production of pharmaceuticals, chemicals used in pharmacy and herbal remedies” with 40.6% and “manufacture of other industrial products” with 44.8%. This is while the highest annual PPI was reported for “production of chemicals” with 113.2% and “manufacture of other transportation equipment” with 106.2% and “production of base metals” with 98.2%.

Mining

The average annual PPI for the mining sector stood at 116.1% in Q2.

The average annual producer inflation of “coal extraction” in Q1 was at 102% and those of “extraction of metal ores” and “extraction of other mines” subsectors were at 123.3% and 67.4%, respectively.

The overall PPI of mining sector stood at 1,018.2 in Q2, indicating a 10.1% increase compared with the previous quarter and a 101.6% growth over the same quarter of last year.

The quarter-on-quarter producer inflation of the “coal extraction” subsector was at 9.4% in Q2 and those of the “extraction of metal ores” and “extraction of other mines” subsectors reached 10.2% and 8.7%, respectively.

The year-on-year producer inflation of the “coal extraction” subsector was 89.6% and those of the “extraction of metal ores” and “extraction of other mines” subsectors were 105.8% and 68.6%, respectively.

Electricity

PPI for the electricity sector during the four-quarter period ending Sept. 22 increased by 37.7% compared with the same period of the year before.

The sector’s PPI stood at 173.9 in Q2, indicating an increase of 0.1% compared with the preceding quarter and a growth of 19% compared with the same quarter of the year before.

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.

PPI gauges 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.

Agronomy, Horticulture, Traditional Husbandry

The average annual PPI for the “agronomy, horticulture and traditional husbandry” stood at 66.5% in Q2.

The overall PPI of this group stood at 540.5, indicating a 79.7% increase compared with the same quarter of the year before.

Year-on-year producer inflation of the previous quarter had increased by 68.4%.

Industrial Chicken Farms

The average PPI for industrial chicken farms in the four-quarter period ending Sept. 22 increased by 84% compared with last year’s corresponding period.

The overall PPI for the sector in Q2 stood at 480, indicating a 15.1% growth compared with the preceding quarter.

The quarterly inflation stood at 7.3% in Q1, meaning that it rose by 7.8% in Q2.

The year-on-year change in Q2 index was at 68.8%, down 38.6% from 107.4% in Q1.

The highest quarter-on-quarter increase of the index among Iranian provinces during the period under review was registered for Tehran with 19.47% and the lowest was 0.2% for Ilam.

Gilan posted the highest quarter-on-quarter deflation among Iranian provinces with 0.8%.

On a year-on-year basis, Khuzestan registered the highest increase with 108.2% and Markazi posted the lowest inflation with 39.1%.

Industrial Livestock Farms

PPI for industrial-scale livestock farms hit 492.2 in Q2, indicating a 21.2% and 82.4% increase compared with the preceding quarter and the same quarter of the year before, respectively.

The average annual producer inflation in Q2 stood at 84%.

Chaharmahal-Bakhtiari Province posted the highest quarter-on-quarter producer inflation with 30.9% while Lorestan posted the lowest producer inflation with 4.4% compared with the preceding quarter.

Tehran registered the highest year-on-year producer inflation with 106.2% while Sistan-Baluchestan posted the lowest year-on-year producer inflation of 24.5% in Q2.