Petroleum slows producer inflation to 3.4% in January
The consistent drop in prices in the petroleum subsector has influenced the overall decrease in the average change in the prices received by domestic producers for the production of their goods and services.
The inflation rate for the petroleum subsector declined consistently to record 3.8 percent in January 2019, after the rate resumed an upward movement to record 36.1 percent in October 2018.
The producer price index (PPI) recorded an average a drop to 3.4 percent in January, 2019 from 4.4 percent in December 2018, representing 1.0 percentage points decrease.
The overall decrease in the PPI was largely influenced by the 1.5 percentage point’s decline of the producer inflation for Manufacturing which constitutes more than two-thirds of total industry, to record 3.0 percent.
The manufacture of refined petroleum products is the second largest subsector of the manufacturing sector, accounting for 22.94 percent of the sector, following the manufacture of food products and beverages with 25.64 percent.
During the month, five out of the 16 major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 3.0 percent.
Manufacture of basic metals recorded the highest inflation rate of 16.8 percent, while Manufacturer prices of machinery and equipment were completely flat
Manufacture of coke, refined petroleum products: Annual rate was 3.8 percent for January 2019, as compared to 10.1 percent in December 2018.
Manufacture of other non-metallic mineral product: Annual rate was 2.7 percent for January 2019 compared to 3.1 in December 2018.
Manufacture of motor vehicles, trailers and semi-trailers: Annual rate was 4.7 percent in January 2019 as compared to 6.2 percent last month.
The producer price inflation in the Mining and Quarrying sub-sector increased by 0.4 percentage points over the December 2018 rate of 8.5 percent to record 8.9 percent in January 2019.
Electricity and Water Supply: the inflation rate was -0.1 percent – translating into deflation – in January 2019, same as the rate recorded in December 2018.
The utilities sub-sector recorded the same deflation rate (-0.1%) as the rate for December 2018.
By Joshua W. Amlanu