Producer Price Index Components Decline for January 2024

• According to data on the Producer Price Index (PPI) released by the Statistical Institute of Jamaica (STATIN), the Mining & Quarrying Index decreased by 0.4% in January, while the index for the Manufacturing industry fell by 0.1%.
• The 'Bauxite Mining & Alumina Processing' category was the main driver for the 0.4% decline in the index for the Mining & Quarrying industry.
• A 1.2% dip in the index for the major group ‘Refined Petroleum Products was the primary contributor to the decline in the index for the Manufacturing industry. However, the overall movement in the industry was tempered by a 0.2% rise in the index for the heaviest weighted major group ‘Food, Beverages & Tobacco’.
• For January 2023 – January 2024, the index for the Mining & Quarrying industry declined by 7.2%. This was a result of a 7.7% decrease in the index for the major group ‘Bauxite Mining & Alumina Processing’.
• The point-to-point index for the Manufacturing industry moved up by 2.0%, reflecting a 1.7% upward movement in the index for the major group ‘Food, Beverages & Tobacco’ and a 4.2% increase in the index for the ‘Refined Petroleum Products’ major group.
• Despite softening in producer prices last year, geopolitical tensions in Europe and the Middle East pose risks that could disrupt oil supply and reignite supply chain issues and result in higher costs for producers.
• 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.

(Sources: STATIN & NCBCM Research)