Producer Price Index Shows Decreases in Mining & Quarrying and Manufacturing Industries for July 2022

• For July 2022, output prices for producers in the Mining & Quarrying industry declined by 1.4%. This was primarily attributed to the 1.5% fall in the index for the major group ‘Bauxite Mining & Alumina Processing’. There was also a decline in the index for the other major group, ‘Other Mining & Quarrying’, which moved down by 0.1%.
• The Manufacturing industry’s index recorded its first decline since the start of the 2022 calendar year, of 0.8%. The main contributor to this downward movement was a 4.5% decline in the index for the major group ‘Refined Petroleum Products’. However, the industry’s movement was tempered by a 0.2% increase in the index for the major group ‘Food, Beverages & Tobacco’ and a 3.1% rise in the ‘Wood, Wood Products and Furniture’ major group’s index.
• For the period July 2021 – July 2022, the Producer Price Index (PPI) for the Mining & Quarrying industry rose by 5.9%, due mainly to an increase of 5.8% in the index for the major group ‘Bauxite Mining & Alumina Processing’. The point-to-point index for the Manufacturing industry moved up by 20.8%.
• For the fiscal year-to-date, April 2022 – July 2022, the index for the Mining & Quarrying industry decreased by 0.5%, while the index for the Manufacturing industry advanced by 4.8%.
• The price decrease in the index follows a decline in the CPI index for the 12 months to July 2022. Despite the still high inflationary environment, there has been a general reduction in commodity and oil prices. BOJ forecasts a further reduction in commodity prices which is expected to stabilize inflation.

(Source: STATIN)