Producers Continue to Be Faced With Higher Price  

• Output prices for producers in the Mining and Quarrying industry increased by 0.1% for October 2023, while the Manufacturing industry declined by 0.3% as released by the Statistical Institute of Jamaica (STATIN).
• The increase in the index for the Mining and Quarrying industry was influenced by a 3.1% increase in the index for the major group ‘Other Mining & Quarrying’. However, there was a negligible decline in the index for the major group ‘Bauxite Mining & Alumina Processing’, which tempered the industry’s movement.
• For the Manufacturing industry, there was a decline in its index of 0.3%. The decrease in the industry’s index was due mainly to a fall of 2.5% in the index for the major group ‘Refined Petroleum Products’. The overall movement was tempered by an increase of 1.8% in the index for the ‘Chemicals and Chemical Products’.
• For the period October 2022 – October 2023, the index for the Mining and Quarrying industry increased by 5.1%. This resulted from a 5.0% rise in the index for the major group ‘Bauxite Mining & Alumina Processing’.
• The point-to-point index for the Manufacturing industry increased by 2.6%, due primarily to an increase of 2.3% in the index for the major groups ‘Food, Beverages & Tobacco’. Also impacting the industry was the 5.3% increase in the index for the major group ‘Refined Petroleum Products’. However, these increases were moderated by a decline of 4.3% in the index for the major group ‘Fabricated Metal Products excluding. Machinery and Equipment’.
• The Producer Price Index (PPI) is a significant economic indicator that tracks the average fluctuation in selling prices that domestic producers of goods and services experience over time. The decision this week by OPEC+ to curtail oil supply could potentially further escalate producer prices, despite oil prices slipping immediately. This is because a reduction in oil supply could drive up costs related to transportation and electricity.

(Source: STATIN)