Iran's producer price index increases by 9.7%

Business Materials 30 December 2017 16:22 (UTC +04:00)

Baku, Azerbaijan, Dec. 30‎

By Fatih Karimov – Trend:

Iran’s Producer Price Index (PPI) indicated an increase of 9.7 percent in a 12-month period to the ninth Iranian calendar month of Azar (ended Dec. 22).

The PPI registered a 1.5 percent rise compared to the preceding month and a 10.7-percent growth compared to Dec. 22, 2016, the Central Bank of Iran (CBI) announced Dec. 30.

Taking the Iranian fiscal year of 1390 (March 21, 2011 to March 20, 2012) as the main one (that is 1390 equals 100), the PPI had reached 255.9 points in the Iranian month of Azar (Nov. 22-Dec. 22).

The Iranian index is measured based on the prices of 708 items of goods and services, categorized into several groups: agriculture, forestry, fishery, industry, transportation and warehousing, hotels and restaurants, information and telecommunication, education, health and social welfare, agriculture, fishery sector, other public and private services.

The highest growth was related to education sector, with a 13.7-percent growth, and the lowest growth was registered in the IT sector, with a 6.9-percent growth.

The industry sector registered a growth of 11.5 percent, meanwhile, the index related to the healthcare and social welfare sector witnessed a 9-percent growth, year on year.

The service sector also registered an annual increase of 8.7 percent.

The transportation, as well as hotels and restaurants sectors witnessed growth by 7.3 and 12.1 percent respectively.

Agriculture and fishery sector also registered an annual growth by 12.3 percent, according to the report.

The PPI measures the average change in the sale prices of the domestic producers of goods and services over the given period of 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 the investment-making decision process, because it’s viewed as a leading indicator for the Consumer Price Index (CPI), which is the most frequently cited measure of inflation.