Rwanda’s Producer Price Index declined in second quarter

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The country’s producer price Index (PPI) declined 1.39 percent in the second quarter of this year compared to the first quarter of 2014 while it declined 0.19 percentages in the second quarter of 2013.

The Producer Price Index (PPI) is a key inflation indicator and measures cost of local goods when they leave the factory, cost of exports and its decline projects a positive performance outlook for the economy as inflation levels are always on downward trends.

On quarterly  change,  the  all  Rwanda  Producer Price Index  is -1.94 percent  in the second half  of  2014 as compared to  the   same period in 2013  while   index for local  products posted a change  of 0.35 percent in the second half  compared to  second half  2013

The index for exports for the second quarter 2014 registered a decrease of 8.05 percent compared to the index of the previous quarter (first quarter 2014) and an increase of  3.16 percent an increase of  1.26 percent compared to the index of the second quarter of the year 2013.

Whilst, the quarterly change in PPI for exports, second quarter 2014 compared to first quarter 2014 is -8.05 percent on a monthly basis, in April 2014, the index decreased by 1.47 percent compared to March 2014. The index for May 2014 decreased by 1.79 percent, while the index for June 2014 decreased by 0.43 percent.

On a quarterly basis, the index for the second quarter 2014 decreased by 1.93 percent compared to the index for the first quarter 2014.

Accordingly, the PPI registered an annual change of-0.19 percent in the second half of 2014 in comparison to the period under review with index for local products annual change at 1.26 percent in the second half compared to second half in 2013.

“On an annual basis, the index for the second quarter 2014 decreased by 0.19 percent compared to the index for the same quarter in 2013,” the report by National Institute of Statistics of Rwanda,” NISR stated.

The report indicates that on monthly basis, the index  registered -1.47 percent  in April  this year  with Coffee products and tea contributing negatively 2.62 percentage points, while  sugar on the other hand  and contributed  positively 1.04 percentage points.

In May, the index  saw -1.79 percent  with  Coffee and tea products contributed negatively 0.99 percentage points as well as  Mining and quarrying   also  contributed deleteriously 0.75 percentage points. While in June the index was -0.43 percent with mining positively contributing 0.26 percentage points.

 

• Coffee and tea products contributed negatively 0.47 percentage points

On a quarterly basis, the main contributors to the index change of the second quarter 2014

(-1.93%) are:

• Coffee and tea products contributed negatively 2.42 percentage points

• Sugar contributed positively 0.39 percentage points

On an annual basis, the main contributors to the index change of second quarter 2014

(-0.19%) are:

• Sugar contributed negatively 0.89 percentage points

• Coffee and tea products contributed negatively 0.56 percentage points

• Mining and quarrying contributed positively 1.07 percentage points

• Beverages contributed positively 0.38 percentage points

 

About the author

Olive Ndaka is the Junior Editor for RwandaEye. An investor and young entrepreneur, she is a quick learner and has contributed many articles for RwandaEye in Kinyarwanda.

More posts by | Visit the site of Ndaka

 

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