PPI Components Show Mixed Results in April 2024

• Output prices for producers in the Mining and Quarrying industry, a component of the producers' price index (PPI), decreased by 1.1% for April 2024. Another PPI component, the index for the Manufacturing industry increased by 0.4% according to the Statistical Institute of Jamaica (STATIN).
• The movement in the Mining and Quarrying industry was attributed to declines in the indices ‘Bauxite Mining & Alumina Processing’ and ‘Other Mining & Quarrying’ which fell by 1.2% and 0.3%, respectively. This was mainly due to the appreciation of the Jamaican dollar vis-à-vis the United States dollar.
• The increase in the index for the Manufacturing industry was due to the rise in the index for the major group ‘Refined Petroleum Products’ of 2.0%, driven by higher crude prices on the international market.
• For April 2023 – April 2024, the point-to-point index for Mining & Quarrying industry declined by 2.6%. This resulted from a 2.8% fall in the index for the major group ‘Bauxite Mining & Alumina Processing’.
• The point-to-point index for the Manufacturing industry increased by 2.1%. Major groups like ‘Refined Petroleum Products’ (7.9%) ‘Food, Beverages & Tobacco (1.1%)’ and ‘Wood, Wood Products and Furniture’ (10.5%) contributed to this increase. However, these increases were moderated by a 2.1% decline in the index for the major group ‘Chemicals and Chemical Products.’
• 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 experienced over time. Geopolitical tensions in Europe and the Middle East pose risks that could disrupt the oil prices and the supply chain, resulting in higher producer costs.

(Source: STATIN)