Producer Price Inflation For April Records 7.4%

THE PRODUCER Price Inflation (PPI) rate for April 2020 was 7.4 per cent.

This rate indicates that between April 2019 and April 2020 (year-on-year), the PPI increased by 7.4 per cent.

This rate represents a 0.6 percentage points increase in producer inflation relative to the rate recorded in March 2020 (6.8%). The month-on-month change in producer price index between March 2020 and April 2020 was 1.5 per cent.

The PPI in the Mining and Quarrying sub-sector increased by 14.3 percentage points over the March 2020 rate of 23.7 per cent to record 38.0 per cent in April 2020.

The producer inflation for Manufacturing sub-sector which constitutes more than two-thirds of the total industry decreased by 1.6 percentage points to record 0.5 per cent.

The Utility sub-sector recorded an inflation rate of 12.1 per cent for April 2020 indicating a decrease of 0.1 percentage points over the March 2020 rate of 12.2 per cent.

In April 2019, the PPI rate for all industry was 7.1 per cent. The rate declined to 6.7 per cent in May 2019. Since then, the rate increased consistently to record 10.2 per cent in August 2019 but declined to 8.9 per cent in October 2019. The rate then increased again continuously to record 14.5 per cent in January 2020 but declined to record 6.8 per cent in March 2020. The rate increased again to record 7.4 per cent in April 2020.

Fifteen out of the 16 major groups in the Manufacturing sub-sector recorded inflation rates higher than the sector average of 0.5 per cent. Manufacture of machinery and equipment n.e.c. recorded the highest inflation rate of 24.7 per cent, while the Manufacture of coke, refined petroleum products and nuclear fuel recorded the least inflation rate of -15.3 per cent.

The producer inflation rate in the Petroleum subsector was 17.2 per cent in April 2019. The rate declined continuously to record 1.2 per cent in June 2019.

However, it increased to 3.1 per cent in August 2019 but declined again to -5.7 per cent in October 2019. Thereafter the rate increased consistently to record 20.6 per cent in January 2020 but constantly declined to record -15.3 per cent in April 2020.