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Press Release Monthly Producer Price Index of Industrial Sector August 2023 (Base year 2018=100)

10/2/2023
 

  • General PPI of August 2023 increased by 4.50%, compared with previous month (M-O-M).
  • General PPI of August 2023 decreased by 32.23%, compared with August 2022 (Y-O-Y).
  • PPI of Crude Petroleum and Natural gas production increased by 4.60%, compared with July 2023.
Planning and Statistics Authority (PSA) has released the new Monthly Producer Price Index (PPI) of the Industrial sector for August 2023, which calculated based on 2018 where the details of relative importance and prices for the base year of 2018 are used, Therefore the relatives of the main four industry sectors become as follow: “Mining" (weight: 82.46%), “Manufacturing" (weight: 15.85%), “Electricity" (weight: 1.16%), and “Water" (weight: 0.53%).

The PPI for August 2023 is estimated at 113.51 points showing an increase of 4.50%, when compared to the previous month's July 2023. On [Y-o-Y] basis, PPI of August 2023 showed a decrease of 32.23%, when compared to the PPI of August 2022. 

Mining and Quarrying:
The PPI of August 2023 for this sector showed an increase of 4.59% when compared with PPI of July 2023, primarily due to the price increase on “Crude petroleum and natural gas" by 4.60%, while no change noticed in “Other mining and quarrying". PPI of Mining of August 2023, when compared with its counterpart in previous year (August 2022), there was a decrease of 34.73%, due to the price decrease on “Crude petroleum and natural gas" by 34.77%, but “Other mining and quarrying" increased by 0.02%, almost stable. Graph (2) showed the monthly movement of “Mining an and Quarrying" index from August 2022 to August 2023, and Graph (3) showed the monthly rate of change in General PPI and Mining.

Manufacturing:
 An increase of 4.28% has been recorded in August 2023, when compared with the previous month's Manufacturing index (July 2023). The prices increase are seen in: “Refined petroleum products" by 13.82%, followed by “Chemicals and chemical products" by 4.46%, “Beverages" by 2.64%, “Cement & other non-metallic mineral products" by 2.63%, and “Food products" by 0.03% The decreasing prices are noticed in “Basic metals" by 7.18%. No change noticed in “Printing and reproduction of recorded media", and “Rubber and plastics products" in August 2023.

Comparing with the index of counterpart in the previous year (August 2022), “Manufacturing" PPI of August 2023 showed a decrease of 18.32%. The major groups which explain this price decrease are: “chemicals and chemical products" by 25.37%, followed by “Basic metals" by 21.41%, “Refined Petroleum products" by 6.07%, and “Rubber and Plastics products" by 5.36%, However, the increasing prices are noticed in “Food products" by 3.36%, “Beverages" by 3.29%, “Cement & other non-metallic mineral products" by 2.76%, and “Printing and reproduction of recorded media" by 0.16%.

Electricity, gas, steam, and air conditioning supply:
The PPI of this group showed a decrease of 3.26% compared to July 2023. When compared the PPI of August 2023, to the PPI of August 2022 [Y-o-Y], showed an increase of 8.22%. Graph (5) shows the index of “Electricity, gas, steam and air conditioning supply" from August 2022 to August 2023.

Water supply:
The PPI of this group showed an increase of 9.59% compared to July 2023. When compared the PPI of August 2023, to the PPI of August 2022 [Y-o-Y], showed an increase of 20.24%. Graph (6) shows the index of “Water supply" from August 2022 to August 2023.

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