Mining & Quarrying and Manufacturing Indices Increase in March 2024

• According to data on the Producer Price Index (PPI) released by the Statistical Institute of Jamaica (STATIN), the Mining & Quarrying Index increased by 0.8% in March, while prices in the Manufacturing industry inched up 0.1%.
• The 'Bauxite Mining & Alumina Processing' category was the main driver for the 0.8% decline in the index for the Mining & Quarrying industry. The index for the other major group, ‘Other Mining and Quarrying’ moved up by 0.2%. These increases were due to the depreciation of the Jamaican dollar vis-à-vis the United States dollar.
• The increase in the Manufacturing industry was mainly due to increases in the index for the major groups: ‘Food, Beverages & Tobacco’ (0.2%) and ‘Refined Petroleum Products’ (0.6%), due mainly to higher fuel prices on the international market.
• For the period March 2023 – March 2024, the index for the Mining & Quarrying industry declined by 7.1%. This was a result of a 7.5% fall in the index for the major group, ‘Bauxite Mining & Alumina Processing’.
• However, for the same point-to-point period, the Manufacturing industry index increased by 2.2%. Contributing to this increase were the major groups: ‘Refined Petroleum Products’ (7.7%) and ‘Food, Beverages & Tobacco (1.6 %)’.
• Geopolitical tensions in Europe and the Middle East pose risks that could disrupt the oil supply and supply chain, which could 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 and NCBCM Research)