Producer Prices Index Components Produce Mixed Results for March 2023

• For March 2023, output prices for producers in the Mining and Quarrying industry increased by 0.7%, while for the Manufacturing industry, prices decreased by 0.1% as indicated by the Statistical Institute of Jamaica (STATIN).
• The growth in the Mining and Quarrying industry index was mainly attributed to a 0.7% increase in the index for the major groups ‘Bauxite Mining & Alumina Processing’ and ‘Other Mining & Quarrying’. This is due primarily to the appreciation of the Jamaican dollar against the United States dollar. The index for the other major group ‘Other Mining & Quarrying’ moved up by 1.6% owing to an increase in operational cost.
• The index for the Manufacturing industry declined by 0.1% due to a fall of 1.8% in the ‘Refined Petroleum Products’ index. The industry’s movement was tempered by an increase of 0.2% in the index for the heaviest-weighted major group ‘Food Beverages & Tobacco’.  This was largely driven by the ‘Manufacture of Beverages and Tobacco’ group which rose by 0.4% due to higher raw material costs. The index for the group ‘Manufacture of Grain Mill Products, Starches and Starch Products’ recorded an upward movement of 0.2%, due to higher prices for cassava.
• For the point-to-point period March 2022 - March 2023, the index for the ‘Mining & Quarrying’ industry decreased by 14.7%, while the Manufacturing industry increased by 4.2%. Contributing to the decline in the prior was a fall of 15.3% in the index for the major group ‘Bauxite Mining & Alumina Processing’ as  Jamalco closed its plant for 10 months due to a major fire in August 2021. The company however completed phase one of its recovery a year later and the plant is expected to be fully operational by September 2023.

(Source: STATIN)