Baku, Azerbaijan, Apr. 29
By Fatih Karimov – Trend:
Producer price index (PPI) in Iran in a 12-month period to the first Iranian calendar month of Farvardin (ended April 20) indicates an increase by 5.4 percent year-on-year.
The PPI shows a 0.4-percent increase compared to the preceding month, and a 9.2-percent rise compared to Apr. 20, 2016, the Central Bank of Iran reported Apr. 29.
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 236.3 in the Iranian month of Farvardin this year (March 20-Apr. 20).
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 17.4-percent growth, and the lowest growth was related to the transportation sector, with a 4.7-percent growth.
The industry sector registered a growth of 10.6 percent, meanwhile the index related to hotels and restaurants witnessed an 11.5-percent growth year-on-year.
The service sector also registered an annual increase by 8.7 percent.
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.