Producer Price Index in Iran drops to 14.8%

Business Materials 30 March 2015 17:55 (UTC +04:00)

‬Baku, Azerbaijan, Mar.30

By Fatih Karimov - Trend: The Producer Price Index (PPI) in Iran dropped to 14.8 percent in the past Iranian fiscal year, which ended on March 20.

PPI hit 208.5 in the 12th month of the past year, a 0.4 percent rise compared to the preceding month, Iran 's ISNA news agency reported on March 30.

The highest growth was related to the health and social service sector, with 41 percent growth, and the lowest growth was related to the manufacturing sector, with 5.5 percent growth.

PPI measures the average change in selling prices received by domestic producers of goods and services over time. The PPI looks at three areas of production: industry-based, commodity-based, and stage-of-processing-based companies.

PPI in Iran is measured based on prices of 708 items of goods and services categorized into eight groups of agriculture, forestation, and fishery; industry; transportation and warehousing; hotels and restaurants; information and telecommunication; education; health and social welfare; and other public and private services.

The core PPI can serve multiple roles in improving investment-making decisions because it can serve as a leading indicator for Consumer Price Index (CPI), which the most frequently cited measure of inflation.

Edited by CN