Producer price index in Iran increases by 2.6%
By Fatih Karimov – Trend:
Baku, Azerbaijan, Aug. 29
The producer price index (PPI) in a 12-month period to the fifth Iranian calendar month of Mordad (ended Aug. 21) indicates an increase by 2.6 percent year-on-year.
The figure shows a 0.7-percent increase compared to the preceding 12-month period.
Counting the Iranian fiscal year of 1390 (March 21, 2011 to March 20, 2012) as the main one, that is 1390=100, the PPI reached 221.7 in the Iranian month of Mordad this year (July 21-Aug. 21), the Central Bank of Iran reported Aug. 29.
The highest growth was related to the education sector, with a 20.9-percent growth, and the lowest growth was related to the manufacturing sector, with a -1.3-percent growth.
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 as it can serve as a leading indicator for Consumer Price Index (CPI), which is the most frequently cited measure of inflation.