Qatar's industrials sector experienced lower price pressure month-on-month in November 2022 as producers' price index (PPI) shrank 3.03%, hinting eased prices at the retail level in the future, according to official statistics.
The country's PPI had weakened on monthly basis on account of hydrocarbons and certain manufactured products like basic metals, according to data released by the Planning and Statistics Authority (PSA).
The PPI measures inflation from the perspective of costs to industry or producers of products as it measures price changes before they reach consumers.
However, Qatar's PPI was seen surging 5.22% on an annualised basis in November 2022.
The PSA had released a new PPI series in late 2015. With a base of 2013, it draws on an updated sampling frame and new weights. The previous sampling frame dates from 2006, when the Qatari economy was much smaller than today and the range of products made domestically much narrower.
The hardening of the global crude oil and industrial input prices, on account of higher inflation and interest rates, had its reflection on the PPI on an annualised basis. However, the yearly increase in PPI has begun slowing down.
The mining PPI, which carries the maximum weight of 82.46%, reported a 3.58% shrinkage month-on-month in November 2022 as the average selling price of crude petroleum and natural gas was seen falling 3.58%.
However, the mining PPI soared 7.73% year-on-year in November 2022 as the average selling price of crude petroleum and natural gas remained elevated at 7.73% and that of stone, sand and clay at 8.64%.
The manufacturing sector PPI, which has a weight of 15.85% in the basket, was down 0.04% on a monthly basis in November 2022 due to a 6.27% plunge in the average selling price of basic metals, 0.89% in rubber and plastics products and 0.26% in cement and other non-metallic mineral products.
Nevertheless, there was a 2.59% increase in the average selling price of refined petroleum products, 1.31% in food products and 0.36% in chemicals and chemical products.
The manufacturing PPI tanked 7.42% year-on-year in November 2022 on account of a 14.13% fall in the average price of chemicals and chemical products, 3.49% in printing and reproduction of recorded media, 2.77% in basic metals and 0.84% in beverages.
However, rubber and plastics sector witnessed a 20.76% surge in average selling price, refined petroleum products (7.54%), cement and other non-metallic mineral products (4.8%) and food products (4.45%).
The index of electricity, gas, steam and air conditioning supply reported 5.52% and 1.47% increase on monthly and yearly basis respectively in November 2022.
The index of water supply was seen declining 2.37% and 9.81% month-on-month and year-on-year respectively in November 2022.