A substantial fall in the earnings within hydrocarbons led Qatar’s PPI (producers’ price index) shrink 10.6% year-on-year in February 2020, according to the official statistics.
Qatar’s PPI — a measure of the average selling prices received by the domestic producers for their output — saw a 5.8% month-on-month decline, said the figures released by the Planning and Statistics Authority (PSA).
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 mining PPI, which carries the maximum weight of 72.7%, plummeted 14.4% on a yearly basis as price of crude petroleum and natural gas plunged 14.6% and that of stone, sand and clay by 5% in the review period.
The PPI for mining registered a 8.3% shrinkage month-on-month in February this year on the back of a 8.3% increase in the price of crude petroleum and natural gas and 2.1% in stone, sand and clay.
The manufacturing sector, which has a weight of 26.8% in the PPI basket, witnessed a 1.9% yearly shrinkage in February this year on a 6.9% contraction in the price of basic metals, 6.1% in basic metals, 3.4% in cement and other non-metallic mineral products, 0.8% in beverages and 0.2% in grain mill and other products.
Nevertheless, there was a 3% increase in the price of paper and paper products, 2.6% in juices, 2.2% in other chemical products and fibers, 0.3% in dairy products, 0.2% in rubber and plastics products and 0.1% in refined petroleum products.
The manufacturing sector PPI had seen a monthly 0.8% fall in February 2020 as the price of refined petroleum products declined 1.9%, juices and rubber and plastics products (1.2% each), cement and other non-metallic mineral products (0.6%) and grain mill and other products (0.2%); whereas that of basic metals rose 3.4%, beverages (1.4%), paper and paper products (1%), basic chemicals (0.3%) and dairy products (0.1%).
However, the utilities group, which has a mere 0.5% weightage in the PPI basket, saw its index expand 7% on yearly basis in February this year as water and electricity prices had risen 6.1% and 8.4% respectively.
The index had seen a 2.5% growth month-on-month this February with electricity and water gaining 3.9% and 0.7% respectively.
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