Planning and Statistics Authority (PSA) has released the Monthly Producer Price Index (PPI) of the Industrial sector for January 2021 with the base year 2013. Producer price index covers goods relating to “Mining” (weight: 72.7%), “Manufacturing” (weight: 26.8%), and “Electricity & Water” (weight: 0.5%).
Mining
The PPI of January 2021 for this sector showed an increase by 14.3% when compared with PPI of December 2020, primarily due to the price increase of “Crude petroleum and natural gas” by 14.4%, while “Stone, Sand and Clay” decreased by 2.2%. PPI of January 2021, when compared with its counterpart in previous year (January 2020), there was a decrease of 14.0%.
Manufacturing
An increase of 10.9% has been recorded in January 2021, when compared with the previous month’s Manufacturing index (December 2020). The prices increase are seen in: “Basic Chemicals” by 13.2%, followed by “Refined Petroleum products” by 11.8%, “Basic Metals” by 11.5%, “Paper and Paper products” by 2.3%, “Other chemical products and fibers” by 1.9%, “Rubber and Plastics products” by 1.5%, and “Dairy products” by 1.2%. However, the decreasing prices are noticed in “Cement and Other non-metallic products” by 3.7%, and “Grain mill and Other products” by 0.2%. while no change is noticed in, “Juices”, and “Beverages”.
Comparing with the index of counterpart in the previous year (January 2020), “Manufacturing” PPI of January 2021 showed a decrease of 1.3%. The major groups which explain this price fall are: “Cement and Other non-metallic products” by 8.8%, followed by “Other chemical products and fibers” by 7.1%, “Refined Petroleum products” by 5.0%, “Grain mill and Other products” by 0.7%, and "Rubber and Plastics products” by 0.4%. However, prices increased in “Basic Metals” by 22.5%, “Paper and Paper Products” by 8.9 %, "Juices" by 5.1%, “Basic chemicals” by 1.8%, “Beverages” by 1.6%, and “Dairy products” by 1.2%.
Electricity and Water
The PPI of this group showed a decrease of 3.8% compared to December 2020, resulting from price decrease in “Electricity” by 6.2%, and “Water” by 0.4%. When compared the PPI of January, 2021, to the PPI of January, 2020 [Y-o-Y], showed an increase of 1.5%, affected by prices rise in “Water” by 7.4%, while “Electricity” decreased by 2.6%.
Overall Index (PPI of Industrial sector)
The PPI for January,2021 is estimated at 57.3 points showing an increase of 13.0%, when compared to the previous month’s December 2020. On [Y-o-Y] basis, PPI of January 2021 showed a decrease of 9.9% when compared to the PPI of January,2020.
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