Kenya National Bureau of Statistics hereby releases the Producer Price Index (PPI) for the first quarter of 2018. Producer Price Index measures the gross changes in the trading price of products on the domestic and non-domestic markets, at all stages of processing.
The price changes are measured from the perspective of the producer. The producer prices are collected as at 15th February, 15th May, 15th August and 15th November of the year. These dates correspond to the first, second, third and fourth quarters of the year, respectively.
The Producer Price Indices are grouped according to the International Standards of Industrial Classifications of All Economic Activities (ISIC) Rev 4. As shown in Figure 1, the first quarter year on year overall producer inflation was 1.53 per cent in March 2018 compared to 3.38 per cent recorded in March 2017.
The overall producer prices increased by 0.29 per cent from December 2017 to March 2018 while the ‘year on year’ inflation was 1.53 per cent. Over the last one year, the highest increase was on manufacture of wood and of products of wood which rose by 8.61 per cent followed by manufacture of chemicals and chemical products which increased by 8.31 per cent. However, during the same period water, manufacture of non-metallic products and manufacture of rubber and plastic products declined by 11.89, 3.11 and 2.11 per cent, respectively.