The rise in the inflation for the mining and quarrying sub-sector has largely influence the overall increase in the average change in the prices received by domestic producers for the production of their goods and services.
The inflation for the sub-sector increased by 2.6 percentage price points over the February 2019 rate of 13.3 percent to record 15.9 percent in March 2019.
The producer price index (PPI) recorded a year on year increase of 6.7 percent in March, 2019 from 5.4 percent in February 2019, representing 1.3 percentage point rise. Producer inflation began the year at 3.4 percent, indicating a continuous year to date rise as at March.
Manufacturing
There was a rise of 1.1 percentage points in the inflation for the manufacturing sub-sector, which constitutes more than two-thirds of total industry to record 6.1 percent.
During the month, five out of the 16 major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 6.1 percent. Manufacturing of basic metals recorded the highest rate of 17.0 percent, while tanning and dressing of leather and manufacturing of machinery and equipment recorded no change in prices.
Utilities
The inflation rate for utilities sub-sector was 0.9 percent for the period, slightly above the 0.2 percent recorded in February 2018.
Trends
In March 2018, the producer price inflation rate for all industry was 3.7 percent. Subsequently, it increased continuously to record 8.2 percent in July 2018, but declined to 5.8 percent in September 2018. In October 2018, the rate increased to 7.2 percent, but declined continuously to record 3.4 percent in January 2019. Since then the rate has resumed the upward trend to record 6.7 percent in March 2019.
By Joshua W. Amlanu
