Producer Price Inflation Records 21.8%

The yaer-on-year producer inflation for all industry was 21.8% in February 2015. The monthly inflation rate was 1.4 percent.

The mining and quarrying sub-sector recorded the highest year-on-year producer price inflation rate of 29.3 percent, followed by the manufacturing sub-sector with 21.6 percent.

The utilities sub-sector recorded an inflation rate of 15.7 percent.

The monthly changes in the producer price index revealed that mining and quarrying recorded the highest inflation rate of 2.2 percent while manufacturing recorded 1.5 percent.

The utilities sub-sector recorded the lowest monthly rate of 0.2 percent.

From February 2014, producer price inflation began an upward trend and increased consistently over six months to record 48.6 percent in August 2014.

However, the rate has consistently declined since then to record 21.8 percent in February 2015.

In February 2015, 10 out of the 16 major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 21.6 percent.

manufacture of basic metals recorded the highest inflation rate of 56.9 percent while the manufacture of tanning and dressing of leather recorded the lowest producer price inflation rate.

The inflation rate in the petroleum sub-sector was 56.1 percent in February 2014 but declined in march to record 44.7 percent.

The rate started rising in April 2014 to record 48.2 percent in May 2014.

Thereafter, the rate fluctuated until November, 2014 to record 61.1 percent. Since then, the rate has consistently declined to record -0.4 percent in February 2015 as a result of base drift effect and decrease in the prices of petroleum products.

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