Producer Price Index in Iran increases
Baku, Azerbaijan, Apr.28
By Fatih Karimov - Trend: The Producer Price Index (PPI) in Iran rose by 0.2 percent in the first month of the current Iranian fiscal year (March 21-April 20) compared to the preceding month, the Central Bank of Iran said April 28.
PPI hit 209.0 in the month of Farvardin, an 8.9 percent rise compared to the same month in the previous year (March 21-April 20, 2014).
The index rose 14.1 percent in the 12th month ending April 20, 2015, compared to the same period in the past year.
The highest growth was related to the health and social service sector, with 40.9 percent growth, and the lowest growth was related to the manufacturing sector, with 5.1 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 is the most frequently cited measure of inflation.
Edited by CN