PPI Components Show Mixed Results; Mining Index Declines, While Manufacturing Rises

• For April 2023, output prices for producers in the Mining and Quarrying industry decreased by 1.4%, while for the Manufacturing industry, prices increased by 0.3% as indicated by the Statistical Institute of Jamaica (STATIN).
• The decline in the index for the Mining and Quarrying industry was due mainly to a downward movement in the index for the major group ‘Bauxite Mining & Alumina Processing’. The index for the other major group, ‘Other Mining & Quarrying’ decreased by 0.3%. These decreases were influenced mainly by the appreciation of the Jamaican dollar vis-à-vis the United States of America dollar over the review period.
• For April 2023, the index for the Manufacturing industry increased by 0.3%. The main contributor was an increase of 1.8% in the index for the major group, ‘Refined Petroleum Products’. The highest weighted major group, ‘Food, Beverages & Tobacco’, registered a negligible increase in its index. The industry’s increase was however tempered mainly by declines in the index for the major groups, ‘Chemicals and Chemical Products’ (0.2%) and ‘Rubber & Plastic Products’ (1.0%).
• The negligible increase in the index for the major group ‘Food, Beverages & Tobacco’ was mainly due to the major group, ‘Manufacture of Grain Mills Products, Starches and Starch Products’ and was the only group to register an increase in its index of 0.8%. The indices of all other groups declined. Additionally, the index for the ‘Refined Petroleum Products’ major group increased by 1.8% due to higher prices for some petroleum products.
• For the period April 2022 - April 2023, the index for the Mining & Quarrying industry fell by 5.2%. This decline was attributed to a decrease of 5.5% in the index for the major group 'Bauxite Mining & Alumina Processing’. The point-to-point index for the Manufacturing industry increased by 2.8%. This was mainly due to the increase of 8.1% for the ‘Food, Beverages & Tobacco’ major group. The industry’s movement was however moderated by the 15.1% decline in the index for the major group ‘Refined Petroleum Products
• PPI, which measures the average change over time in selling prices received by domestic producers of goods and services. Despite a slight decrease in the index in April, the decision by OPEC+ to cut oil supply could lead to further increases in prices for producers from increased transport and electricity costs.

(Source: STATIN)