Producer Price Index (PPI) – 4Q 2017

• The Producer Price Index (PPI) rose to 138.7 from 136, growing 1.6% (Q/Q) and 3.1%(Y/Y), boosted by PPI in Mining (+6.9% Q/Q) due to recent surge in a number of commodities (coal in particular). PPI in Agriculture and Manufacturing increased 1.99% (Q/Q) and 0.74% (Q/Q) respectively.
• PPI in Mining subsector grew 8.7% (Q/Q) and 9.6% (Y/Y). Sharp inflation did not occurred in Quarrying subsector where PPI was flat (0.14%) compared to 3Q 20017 and
  contracted 2.75% from a year ago.
• Modest inflation in Agriculture was driven by Food Crop subsector (+3.3% Q/Q, +4.3% Y/Y) and Plantation subsector (+2.6% Q/Q, 1.8% Y/Y). PPI in Livestock subsector was unchanged from previous quarter and increased 4.18% (Y/Y). Forestry subsector saw a deflation of 0.2% (Q/Q).
• Inflation in Manufacturing was on a rise, accelerating 0.74% (Q/Q) following an expansion of 0.54% (Q/Q) in 3Q 2017. On annual basis, PPI grew 2.5% after increased 2.2%.
• Three subsectors that experienced the fastest pace were Rice Milling, Flour and Animal Feed (+3.3% Q/Q, +2.7% Y/Y), Basic Metal (+1.53% Q/Q, +5.6% Y/Y) and Metal Goods (+1% Q/Q, +4.6% Y/Y). Fertilizer was the only subsector recorded deflation, 1.3% Q/Q and 2.7% Y/Y.