Qatar industrial producers' price pressure increases month-on-month in August: PSA

Qatar's producers' price index (PPI), which captures the price pressure felt by the producers of goods and services, rose month-on-month but was seen drifting southwards on an annualised basis in August, according to official estimates.The country's PPI jumped 4.5% on a monthly basis owing to a noticeable increase in the indices of hydrocarbons and certain manufactured items such as refined petroleum products, chemicals, cement and beverages, according to figures released by the Planning and Statistics Authority (PSA).The PPI – which measures inflation from the perspective of costs to industry or producers of products as it measures price changes before they reach consumers – however saw a 32.23% plunge on an annualised basis in August 2023 on hydrocarbons, chemicals and basic metals.The PSA had released a new PPI series in late 2015. With a base of 2018, 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 mining PPI, which carries the maximum weight of 82.46%, reported a 4.59% surge month-on-month in August 2023 owing to a 4.6% increase in the index of extraction of crude petroleum and natural gas.The mining sector PPI had seen a 34.73% plunge year-on-year in August 2023 as the index of crude petroleum and natural gas was seen dropping 34.77%, even as that of other mining and quarrying was up 0.02%.The manufacturing sector PPI, which has a weight of 15.85% in the basket, soared 4.28% on a monthly basis due to a 13.82% increase in the index of refined petroleum products, 4.46% in chemicals and chemical products, 2.64% in beverages, 2.63% in cement and other non-metallic mineral products and 0.03% in food products. However, there was a 7.18% contraction in the index of basic metals in August 2023.The manufacturing PPI, however, plummeted 18.32% on a yearly basis in August 2023 on account of a 25.37% contraction in the index of chemicals and chemical products, 21.41% in basic metals, 6.07% in refined petroleum products and 5.36% in rubber and plastics products.However, there was a 3.36% increase in the index of food products, 3.29% in beverages, 2.76% in cement and other non-metallic mineral products and 0.16% in printing and reproduction of recorded media in the review period.The index of electricity, gas, steam, and air conditioning supply reported 3.26% decline on a monthly basis but shot up 8.22% year-on-year in August 2023.The index of water supply soared 9.59% and 20.24% month-on-month and year-on-year respectively in the review period.