The year-one-year producer price inflation (PPI) for the month of July 2016 was 10.3 percent; the monthly change rate was 0.9 percent.

This rate represents a 2.7 percentage point increase in producer inflation relative to the rate recorded in June 2016 (7.6%).

The utilities sub-sector recorded the highest year-on-year producer price inflation rate of 36.6 percent, followed by the mining and quarrying sub-sector with 30.4 percent.

Manufacturing Sector

During the month of July 2016, thirteen out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 1.0 percent.

Tanning and dressing of leather recorded the highest inflation rate of 39.4 percent, while manufacturing of coke, refined petroleum products and nuclear fuel recorded the lowest producer price inflation rate of -19.3%.

Petroleum Price Index

The inflation rate in the petroleum sub-sector was -6.4 percent in July 2015. Subsequently, the rate declined to record -34.5 percent in October 2015.

It however, increased to -21.8 percent in December 2015 and rose further to record 3.3 percent in January 2016. It then declined to 0.5 percent in February 2016 but increased to record 2.9 percent in March 2016 as a result of the base drift effect.

The rate increased again to 6.5 percent in April 2016 but declined slightly to 6.1 percent in May 2016. In June 2016, the rate decreased to record -4.7 percent and then to -19.3 percent in July 2016 as a result of the base drift effect.

Trends

The year-on-year inflation in ex-factory prices of goods and services was 10.3 percent for July 2016. The rate recorded in July 2015 was 10.2 percent. Subsequently, the rate declined to record 2.9 percent in October 2015.

However, it inched up slightly to record 3.0 percent in November 2015, and then increased to 11.0 percent in December 2015 and to 16.3 percent in January 2016.

The rate decreased to 14.5 percent in February 2016 and continued its downward trend to record 11.2 percent in April 2016.

In May 2016, it dropped further to 11.0 percent and then to 7.6 percent in June 2016, but increased again to 10.3 percent in July, 2016.