Producer Price Index July 2017: 0.33 Percent Deflation

Producer price levels in the second quarter of 2017 decreased compared to the previous quarter. This is reflected in data from the Central Bureau of Statistics, which shows that the combined producer price index (PPI) in the second quarter of 2017 fell by 0.33 percent to 133.41 compared to 133.86 in the first quarter of 2017. This deflation was the first since the third quarter of 2013. However, compared to the second quarter of 2016, there was inflation of 3.52 percent.

The mining and quarrying sector experienced the largest deflation in the second quarter of 2017, namely 3.02 percent, followed by the agricultural sector at 0.72 percent. Meanwhile, the sectors experiencing the largest inflation were passenger transportation, reaching 2.01 percent; electricity and gas supply, with inflation of 0.38 percent; accommodation, food and beverages, 0.14 percent; and water management, 0.04 percent.

The PPI is a figure that illustrates the rate of price change at the producer level. This price change can be used as an early indicator of wholesale and retail prices.