Factory Prices Fall

The rate at which prices of domestic products changed in November, this year increased by 15.8 percent between November 2011 and November, this year, representing a decrease in producer inflation of 3.3 percentage points relative to the revised rate of 19.1 percent recorded in October 2012.

The month-on-month change in producer prices between October 2012 and November 2012 was -0.4 percent.

In November, the producer price inflation in the mining and quarrying subsector decreased by 11.2 percentage points over the October 2012 rate of 30.8 percent, to record 19.6 percent.

Manufacturing, which constitutes more than two-thirds of total industry, decreased to 18.9 percent from a rate of 21.5 percent in October 2012. The utilities sector remained unchanged.

During the 12-month period, all industry recorded the highest inflation in June and October 2012 (19.1 percent) and the lowest in December 2011 (13.6 percent). From January to May 2012, the producer inflation fluctuated between 15.0 percent and 16.6 percent.

However, it increased slightly in July 2012 to 19.0 percent and dropped to 17.8 percent in August. The declining trend continued in September 2012 but increased to 19.1 percent in October 2012 before declining again in November 2012 to 15.8 percent.

In November, seven out of 16 major groups in the manufacturing sector recorded inflation rates higher than the sector average of 18.9 percent. The manufacture of textiles recorded the highest inflation rate of 40.1 percent while the manufacture of machinery and equipment recorded no change.

During the last 12 months, the producer inflation in the petroleum industry exhibited a downward trend. The highest inflation rate in the industry was recorded in November 2011 (26.5 percent) and the lowest in May 2012 of (16.0 percent).

The year-on-year producer inflation for all industry was 15.8 percent for November with utilities recording 2.9 percent.