EghtesadOnline: The Statistical Center of Iran has recently released three reports on the producer price index of mining, services and industrial sectors over the second quarter of the current year (June 22-Sept. 22, 2018).
PPI for the mining sector in the four-quarter period ending Sept. 22, which marks the end of summer, increased by 30.8% compared with the same period of last year. The sector’s PPI for the 12 months to June 21–end of spring–had increased by 22%.
The overall PPI of mining sector (using 2011 as the base year) stood at 324.7 in summer, indicating a 12.4% increase compared with the previous quarter and 46.2% growth over the same quarter of last year.
The “extraction of metal ores” sector had the biggest impact on the 12.4% rise in the mining PPI, according to Financial Tribune.
PPI of “extraction of metal ores” sector in the second quarter increased by 13.4% compared with the preceding quarter to reach 341.2 from 301. The rise is mostly driven by a 17.1% increase in the activities of “extraction of iron ores”.
The index for “extraction of iron ores” in Q2 reached 456.7, indicating a 17.1% rise compared with the previous quarter. The rise in the prices of iron ore concentrate is to blame for the increase in the “extraction of iron ores” category in Q2.
Services PPI Inflation at 8.7%
The overall Producer Price Index for the services sector stood at 285.1 in Q2 of the current Iranian year, indicating an 8.7% increase compared with the previous quarter.
The PPI for services is calculated based on the indexes of eight subsectors, namely “repairing motor vehicles, motorcycles and home appliances”, “hotels and restaurants”, “transportation, storage services and communications”, “brokerage (insurance) services”, “real estate, leasing and business”, “education”, “health services and social work” and “other public, social and personal services”.
PPI for the “repairing motor vehicles, motorcycles and home devices” subsector stood at 334.8, indicating a 7.8% rise compared with the previous quarter.
The index for “hotels and restaurants” was at 372.7, posting a 9% rise compared with the previous quarter.
The PPI for “transportation, warehousing services and communications” stood at 337.7, to register a 15.2% increase over the previous quarter.
The index for “brokerage financial services (insurance)” was 293.2, indicating a 5.5% rise compared with the previous quarter.
“Real estate, leasing and business”’ PPI stood at 215.3, registering a 5.2% rise over the previous season.
The PPI for “education” stood at 265.7, posting a 1.5% rise compared with the previous quarter.
“Health services and social work” PPI was 415.6, indicating an 8.2% rise over the quarter before.
And the PPI measured for the subsector of “other public, social and personal services” stood at 306.1, showing a 6% rise compared with previous season.
Industrial PPI Grows 22.7%
The industrial PPI in the four-quarter period ending Sept. 22 increased by 32.9% compared with the same period of last year. It stood at 340.3 in summer, indicating a 17.7% increase compared to the previous quarter and a 52.8% increase over the same quarter of last year.
The inflation for “production of base metals” was the biggest driver of Q2 overall PPI among all subsectors as it stood at 407.5, indicating a 29.8% rise compared with Q1.
“Production of primary products of iron and steel” increased by 25.4%, “production of aluminum basic products” increased by 88% and “production of copper basic products” grew 39.1% quarter-on-quarter.
PPI measured for the subsector of “coal and oil refineries production industries” increased by 7.5% to reach 324 and PPI of “refined petroleum products” grew 7.5% over the previous season.
The producer price index of “food and beverages’ industries” increased by 21.8% over the previous quarter to stand at 347.5 in summer. “Production of dairy products” increased by 29.2%, “production of other foods” by 73.2%; “production of animal and vegetable oil” by 17.9% as “livestock and poultry slaughter” subsector registered a 25.7% rise in the PPI quarter on quarter.
PPI of “chemical products industries” increased by 23.7% in Q2 to reach 350.4. The price index of the production of “plastic and synthetic rubber” rose by 18.6%, that of “chemicals, excluding fertilizers and nitrogen compounds” by 23.8%, “production of soap, cleansers, detergents, perfumes and cosmetics” by 28.6% and the price index of the production of “synthetic fibers” increased by 69.7% in Q2 over the previous quarter.
PPI calculated for “rubber and plastic products” in summer showed a 55.6% increase over the previous quarter to reach 527.2. “Production of plastics, excluding shoes” increased by 62.5% and the price index for “production of inner and outer tire wear, re-coating and restoring” increased by 37.5% compared with the previous quarter.
The “power machinery, generators and transistors” subsector price index rose 45.5% over Q1 to hit 501.5. Production price of “Wire and isolated cable” increased by 51.7% and that of “electrical distributors” jumped 64.2% quarter on quarter.
PPI of “motor vehicles, trailers and semi-trailers” increased by 6.2% to stand at 280.5 in Q2. The price index of “motor vehicles” manufacturing increased by 4.8% and that of “spare parts for motor vehicles and their engines” rose by 19.3% over the preceding quarter.