Producer Price Index Continues To Grow YoY

  • For November 2021, output prices for producers in the Mining and Quarrying industry increased by 1.4%, with an upward movement in output prices in the Manufacturing industry of 0.8%, as released by the Statistical Institute of Jamaica (STATIN). 
  • The increase in the index for the Mining and Quarrying industry was influenced mainly by a 1.5% rise in the index for the major group ‘Bauxite Mining & Alumina Processing’. The index for the other major group ‘Other Mining & Quarrying’ rose by 0.3%. These increases were due to the depreciation of the Jamaican dollar against the United States dollar. 
  • For the period under review, the Manufacturing industry continued to be impacted by increases in the cost of raw materials on the international market, as well as, rising freight costs. The main contributors to the 0.8% rise in the index for the Manufacturing industry were the major groups: ‘Refined Petroleum Products’ which increased by 1.6%; ‘Food, Beverages and Tobacco’ up by 0.5% and ‘Chemicals and Chemical Products’ which increased by 1.5%. 
  • For the period November 2020 – November 2021, the point-to-point movement for the Mining & Quarrying industry was 27.4%, due mainly to an increase of 28.4% in the index for the major group ‘Bauxite Mining & Alumina Processing’. The point-to-point movement for the Manufacturing industry was 20.2%. 
  • Point-to-point PPI has grown in November relative to the results for October, while Consumer Price Index (CPI) had fallen for the same period. This could be influenced by the challenges manufacturers face passing on higher input prices to consumers. Further, with supply chain challenges expected to continue into 2022, the output prices for the manufacturing sector are expected to remain elevated.

(Sources: STATIN & NCBCM Research)