The producer price of crops came 0.1% lower yr/yr in the fifth month of 2010, following a 6.0% drop in April. The KSH detected a rise of 0.5% yr/yr in this category in the first five months, against a growth of 1.2% in Jan-Apr and -34.5% in Jan-May 2009. Excluding fruits and vegetables, PPI inflation at crops came to 0.8% in May vs. -6.3% in Apr and -31.8% in May 2009.

The producer price of cereals (including seeds), which represent a large weight in the index, was down by 0.9% yr/yr in May, against a decline of 7.8% in Apr. The Jan-May data showed an increase of 0.1%, down from 1.1% in Jan-Apr.

The producer price of industrial crops ticked down by 0.7% yr/yr in May vs. -2.4% in Apr. The Jan-May decline came in at 0.6% vs. -1.7% in the first four months.

The farmgate price of oil seeds decreased by 2.9% yr/yr following a 5.6% drop in Apr, and the Jan-May figure showed a 2.8% decline against a fall of 3.8% in the first four months.

The producer price of potato rose 11.1% yr/yr in the 5th month vs. +23.2% in Apr, and there was an uptick of 6.5% yr/yr in this product category in Jan-May, against +12.3% in Jan-Apr.

The producer price of vegetables rose 13.6% yr/yr in May against an increase of 11.7% in Apr. The Jan-May figure showed a 12.1% increase, up from 11.2% in Jan-Apr.

The producer price of fruits (including grape) went down by 21.8% yr/yr in May, against a decrease of 25.5% in the previous month, and the Jan-May figure showed a 9.3% decline, versus -4.9% in Jan-Apr.

Excluding fruits and vegetables, agricultural producer prices were down by 0.2% yr/yr in May, against -5.8% in Apr. In the first five months, there was a 1.4% decrease here, against -1.2% in Jan-Apr.

Animal and animal product producer prices were down 1.6% yr/yr in the fifth month of the year vs. -5.3% yr/yr in Apr. In the first five months, the KSH detected a 2.5% yr/yr decrease vs. -2.6% in Jan-Apr.

The producer price of pigs for slaughter dropped by 13.8% yr/yr in May against -17% in Apr. In the first five months, there was a decline of 12.4% yr/yr in this category, vs. -12.1% in Jan-Apr. The producer price of cattle for slaughter went down by 4.1% in Mar vs. -4.7% yr/yr in Feb. In Jan-May, there was a rise of 0.4%, vs. +1.4% as in Jan-Apr. The producer price of poultry for slaughter rose 0.9% yr/yr, against -3.0% in the preceding month, and rose 0.9% in Jan-May vs. +0.6% yr/yr in the first four months.

The producer price of milk rose by 14% yr/yr, more than in April (11%). The producer price of eggs increased 5.2%, against a drop of 2.3% in Apr."

Source: Portfolio Online Financial Journal