Producer Price Index (PPI) Fourth Quarter 2014

PPI42014Kenya National Bureau of Statistics hereby releases the Producer Price Index (PPI) for the fourth quarter of 2014. Producer Price Index measures the gross changes in the trading price of products on the domestic and the 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 corresponds to the first, second, third and fourth quarters respectively.

The Producer Price Indices are grouped according to the International Standards of Industrial Classifications of All Economic Activities (ISIC) Rev 4. The overall producer prices decreased by 1.28 per cent in the fourth quarter of 2014 compared to an increase of 0.69 per cent recorded in the third quarter of 2014. The ‘year on year’ PPI inflation, from December 2013 to December 2014 was 1.24 per cent.

The main contributors in the fourth quarter decreases were electricity, manufacture of coke and refined petroleum products, manufacture of food products and manufacture of rubber and plastics products. Under manufacture of food products, the producer prices of grain mill products, dairy products and vegetable oils and fats declined. This caused the index to drop by 0.68 per cent. Over the three months period, electricity decreased by 9.46 per cent while manufacture of coke and refined petroleum products declined by 4.16 per cent. Although the index on Food products dropped in the fourth quarter, prices of sugar, wheat flour and prepared animal feeds increased. Download Producer Price Index (PPI) Fourth Quarter 2014