Producer price index in Iran increases by 3.5%

Business Materials 26 December 2016 17:12 (UTC +04:00)

Baku, Azerbaijan, Dec. 26

By Fatih Karimov – Trend:

Producer price index (PPI) in Iran in a 12-month period to the ninth Iranian calendar month of Azar (ended Dec. 21) indicates an increase by 3.5 percent year-on-year.

The PPI shows a 2-percent increase compared to the preceding month, and a 6.8-percent rise compared to Dec. 21, 2015, the Central Bank of Iran reported Dec. 26.

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 231.1in the Iranian month of Azar this year (Nov. 21-Dec. 21).

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

The highest growth was related to the healthcare and social welfare, with a 17.7-percent growth, and the lowest growth was related to the ICT sector, with a 2.6-percent growth.

The industry sector registered a growth of 7.1 percent, meanwhile the index related to hotels and restaurants witnessed a 10.9-percent growth year-on-year.

The 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.

It should be noted that 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.