The annual growth rate recorded for the overall Producer’s Price Index is 1.8 per cent. The Producer’s Price Index for major economic activities such as agriculture, manufacturing and water supply and electricity generation and distribution in October 2018 is 130.7, Official data of Census and Statistics Department revealed.PPI for agriculture, manufacturing and electricity and water supply sectors are 142.6, 124.7 and 86.2 respectively. Manufacturing sector reported a significantly high positive annual growth rate of 13.4 per cent.
Electricity and water supply sector also reported a positive annual growth rate of 1.7 per cent. Agriculture sector reported the sharpest year on year decrease of 17.3 per cent in October 2018 compared to the same month in 2017,Domestic producers engaged in activities of production of eggs (21.9%) and production of dairy” (2.2%) received higher prices for their output in the month of October 2018 compared to the same month in 2017. Although, activities of growing of vegetables (28.4%), growing of fruits, nuts and beverage crops (17.6%) and growing of cereals (13.0%) reported significantly high negative growth rates in the month of October, 2018 on annual basis.
In manufacturing sector, the highest growth rate in prices received by domestic producers reported from the activity, manufacturing of coke, refined petroleum products and nuclear fuel (46.6%) in October, 2018 on annual basis.The activities of manufacturing sector, publishing, printing and reproduction of recorded media (24.3%), manufacturing of other transport equipment (18.2%), manufacturing of chemicals and chemical products (15.0%), manufacturing of rubber and plastics (12.2%) and manufacturing of wearing apparel, dressing, and dyeing of fur” (10.7%) posted significantly high positive growth rates in October 2018 compared to that of in 2017.
Further, manufacturing of furniture and manufacturing of goods not elsewhere classified (7.3%), manufacturing of textiles (7.2%), manufacturing of electrical machinery and apparatus (5.0%), manufacturing of other non-metallic mineral products” (3.9%) and manufacturing of basic metals (1.0%) reported considerably higher growth rates on annual basis.The only manufacturing activity which reported a negative annual growth rate is manufacturing of food and beverage (1.5%) in the month of October 2018 compared to October 2017 generation and distribution of electricity and water supply activities reported positive annual growth rates of 1.4 per cent and 3.2 per cent respectively in the month of October 2018 on annual basis.
The Producer’s Price Index (PPI) measures the average change over the time in prices received by domestic producers of goods and services. The introduction of the PPI in Sri Lanka provides a more complete picture of price movements and trends for making informed policy decisions. Department of Census and Statistics (DCS) has been releasing PPI quarterly from September, 2015 with time lag of 35 days.Giving due consideration for making the estimates available more frequently, it has now been arranged to release PPI monthly with a time lag of 45 days.