PPI Components Diverge in August

• Output prices for producers in the Mining and Quarrying industry, a component of the producers' price index (PPI), increased by 0.2% for August 2025, while the index for the Manufacturing industry declined by 0.1% according to the Statistical Institute of Jamaica (STATIN).
• The increase in the index for the Mining & Quarrying industry was primarily due to a similar 0.2% rise in the index for the major group ‘Bauxite Mining & Alumina Processing’.
• On the other hand, the decline in the PPI for the Manufacturing industry was due to a 1.4% decline in the major group ‘Refined Petroleum Products’. However, this decline was tempered by a 0.2% increase in the index for the major group ‘Food, Beverages & Tobacco.
• For the period August 2024 – August 2025, the point-to-point index for the Mining & Quarrying industry decreased by 6.6%. This was mainly due to a decline of 7.5% in the index for the major group ‘Bauxite Mining & Alumina Processing’.
• The point-to-point index for the Manufacturing industry increased by 1.9%. This was related to a 3.1% increase in the index for the major group ‘Food, Beverages & Tobacco. However, the industry’s overall increase was moderated by a 5.7% fall in the index for the major group ‘Refined Petroleum Products’ due to lower prices for crude on the international market.
• Looking ahead, a significant upside risk to the Producer Price Index (PPI) is posed by the potential for renewed geopolitical tensions to disrupt supply chains. Such a disruption would likely lead to a sharp acceleration in international oil prices, thereby immediately escalating imported input costs for domestic manufacturers and placing strong upward pressure on the Manufacturing index.

(Sources: STATIN & NCBCM Research)