Producer Price Inflation rises again to hit 33.5% in May 2022

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Producer price inflation, the average price of goods and services received by domestic producers for their production activities, for the month of May, has risen to 33.5 percent.

This rate represents a 2.1 percentage point increase in producer inflation relative to the 31.4 percent recorded in April 2022, and a 21.7 percentage point increase relative to the rate recorded in May last year, which was 11.8 percent.

This increment was mainly influenced by the manufacturing sub-sector, which has seen a consistent rise for years now.

The month-on-month change in the producer price index between May 2022 and May 2022 was 3.6 percent.

Forever Product

In May 2021, the producer price inflation rate for industry was 11.8 percent.

The rate decreased continuously to record 8.1 percent in August 2021 but increased to record 8.8 percent in September 2021.

Subsequently, the rate resumed an upward trend and increased consistently to a record 33.5 percent in May 2022.

Performance of the sectors

The Manufacturing sub-sector recorded the highest year-on-year producer price inflation rate of 45 percent, followed by the Mining and Quarrying subsector with 23.9 percent.

For manufacturing, one out of the 16 major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average.

The manufacture of coke, refined petroleum products and nuclear fuel recorded the highest inflation rate of 121 percent, while the manufacture of machinery and equipment, n.e.c. recorded no inflation rate.

The utility sub-sector recorded the lowest year-on-year producer inflation rate of 1.1 percent.

The manufacturing sub-sector recorded the highest monthly inflation rate of 6.4 percent, followed by the utility sub-sector recorded no change.

The mining and quarrying sub-sector recorded the least inflation of -4.6 percent in May 2022.

Petroleum Price Index

The producer inflation rate in the petroleum subsector was 29.4 percent in May 2021. The rate decreased to 23.9 percent in June 2021 and increased to 25.3 percent in August 2021.

Thereafter, it increased continuously to 58.4 percent in November 2021 but dropped to 36.0 percent in January 2022.

In February 2022 the rate increased to 44.3 percent and jumped to 121.0 percent in May 2022.

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