This represents a 0.8 percentage point decrease in producer inflation.

The Producer Price Index (PPI) measures the average change over time in the prices received by domestic producers for the production of their goods and services.

The PPI in the Mining and Quarrying sub-sector decreased by 1.7 percentage points over the November 2021 rate of 1.8 per cent to record 0.1 per cent in December 2021.

That of the Manufacturing sub-sector, which constitutes more than two-thirds of the total industry, also decreased by 0.8 percentage points to record 19.2 per cent.

The utility sub-sector recorded a 0.2 per cent inflation rate for December 2021.

In December 2021, two out of the 16 major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 19.2 per cent.

Manufacture of coke, refined petroleum products and nuclear fuel recorded the highest inflation rate of 56.4 per cent, while the manufacture of motor vehicles, trailers and semi-trailers recorded the least inflation rate of -3.5 per cent.

Petroleum Price Index

The producer inflation rate in the petroleum sub-sector was -4.0 per cent in December 2020.

The rate increased continuously to peak at 31.0 per cent in March 2021 but declined to 23.9 per cent in June 2021.

The rate increased continuously to record 58.4 per cent in November 2021. However, it dropped to 56.4 per cent in December 2021.

Trends

In December 2020, the producer price inflation rate for all industry was seven per cent.

The rate increased continuously to 13 per cent in March 2020 but declined to 10.9 per cent in April 2021.

In May 2021, the rate increased to 11.8 per cent but decreased continuously to a record of 8.1 per cent in August 2021.

The rate increased continuously to 13.6 per cent in November 2021 but declined slightly to 12.8 per cent in December 2021.