Qatar’s PPI drops 30% y/y in April

By bne IntelliNews June 29, 2016

Qatar’s producer price index contracted 29.6% y/y in April, narrowing from a 33% annual deflation the preceding month, amid falling costs in all sectors except utilities, the statistics office said on June 29.

In monthly terms, however, Qatar’s PPI grew 1.6% in April, reversing a 1.9% m/m contraction in March. The monthly expansion is the first in over ten months amid slightly recovering oil prices and the gradually fading low base effects.

Falling production charges in Qatar have curbed the CPI inflation over the past 17 months despite strong inflationary pressures amid aggressive public spending. Qatar’s CPI inflation cooled to 2.6% y/y in May from 3.4% y/y the preceding month on falling food prices and lower entertainment costs.

Producer prices in the mining and quarrying sector (77% of the index) dropped 35% y/y albeit rising 1.1% m/m in April on contracting producer charges in the crude oil and natural gas sector (down 35.4% y/y) that largely offset a 0.5% y/y rise in the charges of stone, sand and clay.

Utility prices grew 2.1% y/y in April but shrank 1.6% m/m. Water costs grew 2.7% y/y and those of electricity energy grew 1.5% y/y.

The manufacturing sector's PPI (21% of the basket) declined 18% y/y in April but expanded 2.4% m/m on higher energy costs in monthly terms.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Turkey, Iraq, Qatar and UAE ink initial Development Road transit corridor agreement

Turkey, Iraq, Qatar and UAE have inked a preliminary agreement to cooperate on the Development Road project, which envisages the transit of goods received at an Iraqi commodities port facilty in ... more

Xlinks warns cost of Morocco-UK Power Project could rise some 25% to reach $30bn

UK renewable energy producer Xlinks, noting significant upward pressure on the cost of all energy projects, has warned that construction of the Morocco-UK Power Project could reach $27bn to $30bn, up ... more

Morocco in talks with investors to build EV battery gigafactories, says minister

The Moroccan government is in extensive talks to attract more electric vehicle (EV) battery manufacturers to support its growing automotive sector and meet soaring demand, industry and trade minister ... more

Follow Us On

Most Read

  1. Ukraine's birth rate plummets to 300-year low as country’s population collapses
    7 days ago
  2. EU finally boosts defence investment into arms production as Ukraine runs out of ammo
    1 month ago
  3. Fresh evidence suggests that the April 2022 Istanbul peace deal to end the war in Ukraine was stillborn
    7 days ago
  4. Don't mention the "D" word - Ukraine
    4 days ago
  5. UBN: The US Needs to Wake Up
    5 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    25 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    29 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. BRICS announce a blockchain-based payment system to create a common currency
    27 days ago
  5. Saudi Arabia to scale back plans for Neom city
    14 days ago

Reports

Dismiss