Factory Prices Up

Factory prices increased by 17.1 percent between December 2011 and December 2012 (year-on-year), representing an increase in producer inflation by 1.3 percentage points relative to the revised rate recorded in November 2012 of 15.8 percent.

The month-on-month change in producer prices between November 2012 and December 2012 recorded -0.4 percent.

In December 2012, the producer price inflation in the mining and quarrying subsector increased by 8.0 percentage points over the November 2012 rate of 19.6 percent, to record 27.6 percent.

Manufacturing, which constitutes more than two-thirds of total industry, increased slightly to 19.3 percent from a rate of 19.0 percent in November 2012.

The rate for the utilities sub-sector was 1.4 percentage points lower than that of November 2012.

During the 12-month period, all industry recorded the highest year-on-year inflation in June and October 2012 (19.1 percent) and the lowest in December 2011 (13.6 percent).

From January to May 2012, the producer inflation fluctuated between 15.0 percent and 16.6 percent and thereafter increased significantly in July 2012 to 19.0 percent and dropped to 17.8 percent in August.

It declined further in September 2012 but increased to 19.1 percent in October 2012 and dropped subsequently in November 2012 to 15.8 percent. In December 2012 however it increased to 17.1 percent.

During the month of December 2012, five out of 16 major groups in the manufacturing subsector recorded inflation rates higher than the sector average of 19.3 percent.

Manufacture of textiles recorded the highest inflation rate of 40.1 percent while the manufacture of machinery and equipment recorded no change.

During the last 12 months, the producer inflation in the petroleum sub-sector exhibited a downward trend.

The highest inflation rate in the subsector was recorded in December 2011 (25.8 percent) and the lowest in May 2012 (16.0 percent).

The mining and quarrying sub-sector recorded the highest year-on-year producer inflation of 27.6 percent. Manufacturing recorded a marginal increase of 0.1 percentage points.