Producer Prices Index increased by 0.4% in February 2023

For February 2023, output prices for producers in the Mining and Quarrying industry decreased negligibly, while for the Manufacturing industry, prices increased by 0.4% as indicated by the Statistical Institute of Jamaica (STATIN).
The decline in the Mining and Quarrying industry index was mainly attributed to negligible decreases in the index for the major groups ‘Bauxite Mining & Alumina Processing’ and ‘Other Mining & Quarrying’. This is due primarily to a slight appreciation of the Jamaican dollar against the USD in February.
An increase of 0.3% in the index for the highest weighted major group ‘Food Beverages & Tobacco’ contributed to the increase in the index for the Manufacturing industry. Other contributing major groups were, ‘Other Manufacturing n.e.c.’ 9.9% and ‘Refined Petroleum Products’ 0.3%.
For the period February 2022 – February 2023, the Mining & Quarrying industry’s index fell by 14.7% while the point-to-point movement for the Manufacturing industry’s index increased by 6.6%. The fall in Mining & Quarrying industry’s index was a result of a 15.3% decline in the index group ‘Bauxite Mining & Alumina Processing’ as the price of Bauxite & Alumina on the international market declined. However, the movement in the Manufacturing Industry was primarily attributed to a 9.7% increase in the index for the major group ‘Food, Beverages & Tobacco but was tempered by a 3.1% decline in the index for the major group ‘Refined Petroleum Products’. The manufacturing industry is now reaping the benefits of falling prices after contending with increased prices for major inputs during the review period given the Russia-Ukraine war amongst other things.
The PPI, which measures the average change over time in selling prices received by domestic producers of goods and services, has trended down over the second half of 2022. Despite a slight increase in the index in February, the fall in freight charges and fuel prices is expected to result in lower costs for local producers going forward and could translate into lower prices for consumers.

(Source: STATIN)