Producer price index in Iran increases to 7%
Baku, Azerbaijan, Aug. 13
By Fatih Karimov– Trend:
Producer price index (PPI) in Iran in a 12-month period to the fourth Iranian calendar month of Tir (ended July 21) indicates an increase by 7 percent year-on-year.
The PPI registered a 1.1 percent rise compared to the preceding month, and an 8.9-percent growth compared to July 21, 2016, the Central Bank of Iran reported.
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 239.7 in the Iranian month of Tir this year (June 21-July 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 hotels and restaurants with an 11.7-percent growth, and the lowest growth was related to the IT sector, with a 7.1-percent growth.
The industry sector registered a growth of 8.8 percent, meanwhile the index related to healthcare and social welfare witnessed a 10.4-percent growth year-on-year.
The service sector also registered an annual increase by 8.7 percent.
The agriculture and transportation sectors witnessed growth by 9.3 and 7.3 percent respectively, 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.