PPI, CPI Inflation Rise in Tandem

The average Producer Price Index in the 12 months ending June 21, which marks the end of the Iranian month of Khordad, increased by 6.5% compared with last year’s corresponding period, the latest report by the Central Bank of Iran announced.

Financial Tribune - The average Producer Price Index in the 12 months ending June 21, which marks the end of the Iranian month of Khordad, increased by 6.5% compared with last year’s corresponding period, the latest report by the Central Bank of Iran announced.

The CBI put the preceding month’s PPI inflation at 5.9%.

A year-on-year increase of 8.7% was registered in the index compared with the similar month of last year. The PPI (using Iranian year to March 2012) stood at 237.2 in Khordad, indicating a 4% rise compared with the previous month.

According to Investopedia, PPI can serve multiple roles in improving investment-making decisions because it can serve as a leading indicator of CPI.

All in all, a decrease in PPI is one of the signs of a probable slowdown in CPI in future months. Almost a perfect correlation exists between CPI and PPI.

The central bank’s latest data on CPI show the goods and services CPI for urban areas in the 12 months to June 21 increased 10.2% compared with last year’s corresponding period, ending months of single-digit average CPI growth.

Jul 2, 2017
Financial Tribune |