- The Producer Price Index (PPI) for July 2024 rose to 116.43 points, reflecting a 0.60% monthly increase and a 7.19% yearly increase.
- The Mining sector, with the largest weight in the index, saw a 0.60% monthly increase, driven by higher prices for Crude petroleum and natural gas.
- The Manufacturing sector experienced a 0.78% increase from June 2024, due to price rises in categories like refined petroleum products and cement, while food products and beverages saw price declines.
- The Electricity sector’s PPI dropped by 2.45% compared to June 2024, with a minimal yearly decrease of 0.04% in July 2024.
In July 2024, the Producer Price Index (PPI) of Qatar reached 116.43 points, marking a notable increase of 0.60 percent from the previous month and a substantial 7.19 percent rise compared to the same month last year, according to data from the National Planning Council. This increase reflects the dynamic shifts within key sectors of the economy, which are integral to understanding the overall PPI movement.
Sectoral Breakdown
Mining Sector
The mining sector, which holds the largest weight in the index at 82.46 percent, experienced a 0.60 percent increase in its PPI in July 2024 compared to June 2024. This growth primarily stems from a 0.60 percent rise in crude petroleum and natural gas prices.
Additionally, the prices for other mining and quarrying activities rose slightly by 0.06 percent. Year-over-year, the mining sector’s PPI surged by 7.55 percent, driven mainly by a 7.57 percent increase in crude petroleum and natural gas prices, with only a marginal 0.04 percent increase in other mining and quarrying activities.
Manufacturing Sector
The manufacturing sector, contributing 15.85 percent to the index, saw a 0.78 percent rise in its PPI in July 2024 compared to June 2024. This increase resulted from price hikes in several subcategories.
Specifically, refined petroleum products saw a significant 2.08 percent increase, followed by cement and other non-metallic mineral products at 1.95 percent. Rubber and plastics products rose by 0.52 percent, basic metals by 0.51 percent, and chemicals and chemical products by 0.36 percent.
Conversely, prices declined in three subcategories: food products dropped by 1.98 percent, beverages by 0.33 percent, and printing and reproduction of recorded media by 0.16 percent. On an annual basis, the manufacturing PPI showed a robust increase of 5.22 percent.
Key contributors to this annual rise included rubber and plastics products, which saw a remarkable 19.97 percent increase, and refined petroleum products, which rose by 7.30 percent.
Other notable increases were observed in chemicals and chemical products (5.97 percent), cement and other non-metallic mineral products (5.15 percent), beverages (2.37 percent), and food products (2.17 percent). However, declines were noted in basic metals (1.51 percent) and printing and reproduction of recorded media (0.49 percent).
Electricity Sector
The electricity sector, which constitutes a small part of the index at 1.16 percent, experienced a decline in its PPI by 2.45 percent from June 2024. On a year-over-year basis, there was a minimal decrease of 0.04 percent in July 2024 compared to July 2023.
Water Supply Sector
The water supply sector, with a weight of 0.53 percent in the index, recorded a 3 percent increase in its PPI from June 2024. This rise contrasts with the trend observed in the other sectors, highlighting a positive shift in water supply pricing.
Looking Ahead
The July 2024 PPI data reveals varied trends across different sectors. The mining and manufacturing sectors showed substantial increases both monthly and annually, reflecting robust price adjustments in crucial areas. In contrast, the electricity sector faced a decline, while the water supply sector exhibited growth.
These shifts offer a comprehensive view of economic dynamics and inflationary pressures within the production sector, providing valuable insights for policymakers and industry stakeholders alike.
