Producer price index in Iran up by 12%

Business Materials 28 June 2015 16:15 (UTC +04:00)

Tehran, Iran, June 28

By Mehdi Sepahvand - Trend:

A recent report says the producer price index (PPI) for the last one year in Iran reached 12 percent.

Setting the Iranian fiscal year 1390 (March 21, 2011 to March 20, 2012) as the main one, that is 1390=100, the PPI reached 214.7 for the Iranian month of Khordad this year (which fell on May 22 to June 21).

This comes with a 1.7 percent growth compared to the preceding month, the Central Bank of Iran reported June 28.

The PPI for the mentioned month shows 7.5 percent growth compared to the same month of last year.

The growth of the PPI for the 12 months ending on June 21 compared to that of the preceding 12 months increased by 12 percent, the report says.

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

PPI in Iran is measured based on the 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.