Producer Price Index (PPI) Second Quarter 2015

Kenya National Bureau of Statistics hereby releases the Producer Price Index (PPI) for the June quarter of 2015. 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 Kenya Petroleum Refineries Limited (KPRL) stopped operations in September 2013. As such, the weights have been re-adjusted accordingly.

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 increased by 1.22 per cent in the second quarter of 2015 compared to an increase of 1.31 per cent recorded in the first quarter of 2015. The ‘year on year’ PPI inflation, from June 2014 to June 2015 was 1.98 per cent.
The main contributors in the second quarter increases were manufacture of food products, manufacture of beverages and manufacture of textiles. Under manufacture of food products the producer prices for dairy products and grain mill products had the highest increase while under manufacture of beverages increase in prices of mineral water and other bottled water caused the index to rise. Although the index under manufacture of food increased over the three months, prices of sugar and tea declined during the period under review. Over the three months period, prices of basic iron and steel and fabricated metals decreased by 5.01 per cent and 3.18 per cent, respectively. Download Producer Price Index (PPI) Second Quarter 2015