ECONOMY: PPI In Oman Inflates By 40.7% In The Second Quarter Of 2022

The Producer Price Index (PPI) in the Sultanate of Oman registered a rise of 40.7 per cent during the second quarter of this year (2022), compared to the corresponding period in 2021.

The data comes from a new report issued by the National Centre for Statistics and Information (NCSI).

What Is PPI?

The producer price index (PPI), as per Investopedia, measures the average change over time in the prices domestic producers receive for their output. It is a measure of inflation at the wholesale level that is compiled from thousands of indexes measuring producer prices by industry and product category.

PPI can be used as a tool to measure inflation from the perspective of costs to industry or producers of products. Because it measures price changes before they reach consumers, some people see it as an earlier predictor of inflation than the Consumer Price Index (CPI).

Breakdown Of PPI In Oman

Oil and gas products took the lead in the upward trend, constituting 48.7 per cent, while non-oil products registered 7.8 per cent.

PPI data from a quarterly survey conducted by the NCSI point to the fact that the hike in prices of oil and gas products results from a 50.3 per cent rise in prices of refined oil products and a 48.4 per cent rise in crude oil and natural gas.

The growth in prices of non-oil products is attributed to a 9.4 per cent rise in prices of the converting industries group and a 1.8 per cent rise in the mining, electricity and water sectors.

In the converting industries group, the prices of most sub-groups grew in varying proportions: foodstuff prices increased by 15.2 per cent, while mineral products, machinery and equipment rose by 11.6 per cent, and other movables by 5.7 per cent.

A breakup of figures shows that, in the foodstuff and textiles sectors, the prices of fisheries, fruits, vegetables and oils grew by 34.8 per cent, textiles by 11.7 per cent, beverages by 8.6 per cent, dairy products by 8.5 per cent, bakery and other food products by 3.9 per cent and footwear items by 2.7 per cent.

In the minerals, machinery and equipment group, the prices of products made from iron, steel or aluminium grew by 35.7 per cent; vacant compressed cylinder products by 15.4 per cent; crude, iron, steel and aluminium up by 11.4 per cent; and water heater products up by 10.4 per cent; while the prices of power transformers, cables and electrical appliances registered an increase of 6.1 per cent.

As for the movables group, the prices of paints and pharmaceutical items grew by 13 per cent, chemical products by 11.6 per cent, rubber and plastics by 6 per cent, re-melted iron waste by 4.9 per cent, and paper products by 1.6 per cent, while the prices of glass products, cement and marble went down by 6.1 per cent.