Qatar industrial producers' price pressure drifts south in July: PSA

Qatar's producers' price index (PPI), which captures the price pressure felt by the producers of goods and services, was seen drifting southwards on both annualised and monthly basis this July, according to the official estimates.The country's PPI plummeted 33.09% year-on-year owing to a noticeable decline in the indices of hydrocarbons and certain manufactured products as chemicals, refined petroleum products and basic metals, 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, saw a 0.22% fall month-on-month in July 2023 on hydrocarbons and chemicals.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 lower expectations on global inflation build-up and its appurtenant reaction within the central banks expect to scale back the pace of its rate increases.The mining PPI, which carries the maximum weight of 82.46%, reported a 33.4% plunge on annualised basis in July 2023 owing to 34.44% contraction in the index of crude petroleum and natural gas and 1.54% in other mining and quarrying segments.The mining sector PPI had seen a 0.28% fall month-on-month in July 2023 as the index of crude petroleum and natural gas was seen dropping 0.28%.The manufacturing sector PPI, which has a weight of 15.85% in the basket, tanked 28% on yearly basis in July 2023 due to a 36.51% contraction in the index of chemicals and chemical products, 22.59% in refined petroleum products, 17.84% in basic metals and 0.38% in rubber and plastics products.Nevertheless, there was a 3.42% increase in the index of food products, 0.81% in beverages, and 0.06% in cement and other non-metallic mineral products in the review period.The manufacturing PPI, however, was up 0.3% on a monthly basis in July 2023 mainly on account of a 6.69% increase in the index of refined petroleum products.There was a 1.31% decrease in the index of chemicals and chemical products, 0.76% in food products, 0.54% in rubber and plastics products, 0.3% in beverages, 0.18% in basic metals and 0.17% in cement and other non-metallic mineral products in the review period.The index of electricity, gas, steam, and air conditioning supply reported 0.68% and 2.58% plunge on yearly and monthly basis respectively this July.The index of water supply soared 14.79% year-on-year but was down 0.41% month-on-month respectively in July 2023.