September 27, 2007

The Statistical Institute of Jamaica (STATIN) recently released a new economic indicator, the Producer Price Index (PPI) that is being published monthly. The monthly bulletin of producer prices was introduced in February 2007 and tracks price movements at the level of the producer. It covers producer prices for two industries namely, Mining & Quarrying and Manufacturing and is published with a two month lag. All indices are subject to two subsequent revisions after the original release.

In July, the Producer Price Index (PPI) advanced by 0.5 per cent and 1.5 per cent for the Mining and Quarrying and Manufacturing industries, respectively. Higher output prices for wheat, alcoholic beverages, petroleum products, concrete and concrete blocks were the main contributors to the upward movement in the index for Manufacturing.

The PPI fiscal year to date movement, from April to July 2007, showed an increase of 1.2 per cent in the index for Mining & Quarrying, and a 4.3 per cent increase in the index for Manufacturing.

For the period, July 2006 to July 2007, the output prices of producers rose by 5.5 per cent in the Mining & Quarrying industry and by 11.9 per cent in the Manufacturing industry. The rise in the index for Manufacturing was mainly attributable to increases in the index for the major groups ‘Food, Beverages & Tobacco’ (12.0 per cent) and ‘Refined Petroleum Products’ (12.6 per cent).

The Producer Price Index Bulletin for July 2007 provides detailed information on the movement of producer prices and is available at the Statistical Institute of Jamaica’s Distribution Centre located at 7 Cecelio Avenue, Kingston 10. Data is also available on the STATIN website at www.statinja.com .