Producer Prices Index Increased By 0.6% In January 2023  

 

• For January 2023, output prices for producers in the Mining and Quarrying industry decreased by 0.5% while for the Manufacturing industry, prices increased by 0.6%, as indicated by the Statistical Institute of Jamaica (STATIN).
• The decline in the Mining and Quarrying industry index was mainly attributed to a decrease in the index for the major groups ‘Bauxite Mining & Alumina Processing’ (0.5%) and ‘Other Mining & Quarrying’ (0.1%). This is due primarily to the appreciation of the Jamaican dollar against the United States dollar.
• The main contributors to the increase in the index for the Manufacturing industry were the ‘Refined Petroleum Products’, ‘Chemical and Chemical Products’ and ‘Food, Beverages & Tobacco’, which increased by 2.0%, 2.0%, and 0.1%, respectively. The increase in the index for the major group ‘Refined Petroleum Products’ was due to higher prices for other petroleum products, despite a decline in some petrol prices. The movement in the index of the ‘Chemical and Chemical Products’ group was attributed to higher cost of raw materials and transportation costs. The increase in the index for ‘Food, Beverages & Tobacco’ was influenced by upward movements in the index for the groups ‘Production, Processing & Preserving of Meats, Fish, Vegetables, Oils and Fats’ and ‘Manufacture of Beverages and Tobacco’, each increasing by 0.3%.
• For the period January 2022 – January 2023, the Mining & Quarrying industry’s index fell by 26.9% while the point-to-point movement for the Manufacturing industry’s index increased by 9.5%. The fall in the Mining & Quarrying industry’s index was a result of a decline in the price of Bauxite & Alumina on the international market. However, the manufacturing industry, while now reaping the benefits of falling prices, has contended 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 January, the fall in freight charges and fuel prices are expected to result in lower costs for local producers going forward and could translate into lower prices for consumers.

(Source: STATIN)