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Annual Change -6,6%

The Index of Industrial Output Prices for October 2020 reached 97,6 units (base 2015=100), recording a decrease of 0,3% compared to September 2020. Compared to the corresponding month of the previous year, the index recorded a decrease of 6,6%. For the period January-October 2020, the index showed a decrease of 2,4% compared to the corresponding period of 2019.

In October 2020 compared to September 2020, the index remained stable in the sectors of mining and quarrying and electricity supply. In the sector of manufacturing, the index recorded a decrease of 0,5%, while in the sector of water supply and materials recovery it showed a rise of 2,4%.

Compared to the corresponding month of the previous year, an increase was recorded in the sector of water supply and materials recovery (3,8%) and a decrease in all other sectors, as follows: electricity supply -29,1%, manufacturing -0,6% and mining and quarrying -0,4%

By division of economic activity in manufacturing, in October 2020 compared to the corresponding month of the previous year, increases were recorded in the manufacture of wood and products of wood and cork, except furniture (1,8%), the manufacture of furniture, other manufacturing and repair and installation of machinery and equipment (1,5%) and the manufacture of refined petroleum products, chemicals and chemical products and pharmaceutical products and preparations (0,9%), while decreases were recorded in the manufacture of electronic and optical products and electrical equipment (-0,7%), the manufacture of food products, beverages and tobacco products (-1,3%) and the manufacture of basic metals and fabricated metal products (-1,8%).

Table 1

Note: Data for September and October 2020 in the sector of Electricity Supply and for October 2020 in the sector of Water Supply and Materials Recovery are preliminary.

Table2

Methodological Note on the Industrial Output Prices Index

Scope
The monthly Industrial Output Prices Index reflects the evolution of prices in the sectors of mining and quarrying, manufacturing, electricity supply, water supply and materials recovery, that is, sections B, C, D and E of the statistical classification of economic activities NACE Rev. 2 of the European Union. The index does not include sewerage, waste collection, treatment and disposal and remediation activities, which are codes 37, 38.1, 38.2 and 39 of section E. The index can be an early indicator of inflationary pressures in the economy. The aggregated index is broken down to local market and export market indices.

Data collection

The collection of data for the sectors of mining and quarrying, manufacturing and materials recovery is conducted by the Statistical Service by telephone enquiries and e-mail. Data is collected after the first Thursday of each month from a sample of enterprises. The Electricity Authority of Cyprus provides consumption data in quantity and value terms, while data is also received from water distribution and desalination units.

Compilation method

The Industrial Output Prices Index is using 2015 as base year, meaning that it shows the monthly changes in prices in relation with the monthly average prices of the year 2015. In the base year, the average of the price indices for the twelve months is 100,0. For example, a monthly price index of 112,3 means that the prices for the specific month have increased by 12,3% in relation to the average monthly prices of 2015.

The aggregated Industrial Output Prices Index is a weighted average of the price indices of the various sub-sectors of Industry. The weights used reflect the sales value of products belonging to each sub-sector in the base year (2015) in relation to the total sales value of the sector.

The compilation of the Industrial Output Prices Index follows the provisions of the Council Regulation (EC) No 1165/98 concerning short-term statistics. The Index is transmitted every month to the Statistical Office of the European Union (Eurostat).

Contact

Evangelia Menelaou
Tel.: 22602165
Email: emenelaou@cystat.mof.gov.cy

(SS)