Release of Producer Price Index Second Quarter 2017

The overall producer prices increased by 1.61 per cent compared with the previous quarter to reach 119.47 points. The increase was mainly driven by rise in the manufacture of food products and manufacture of chemicals and chemical products.
However, during the same period producer prices of electricity, manufacture of other non-metallic mineral products and manufacture of basic metals declined.

The producer price index of food products increased due to rise in prices of sugar, grain mill products especially maize flour, tea and processed milk compared with the first quarter of 2017. Manufacture of furniture and manufacture of wood and of products of wood and cork also increased in the review period. However, producer prices of cement, salt extracts and wearing apparel declined compared with the first quarter. The producer prices of some products especially cement have dropped due to competition.

The overall PPI increased from 117.58 in the first quarter 2017 to 119.47 in the second quarter 2017. The ‘year on year’ inflation was 6.44 per cent. Under manufacture of food, which has the highest weight in the PPI basket, the year on year inflation was 15.93 per cent in June 2017.