Extractive sector drives up industrial ex-factory prices in Q4 2022

(Business in Cameroon) - Production costs in the extractive sector in Cameroon (oil and gas production) increased by 16% yoy between October and December 2022, the national stats agency INS reported in its recent Industrial Producer Price Index (IPPI). This strong increase, the institution said, has made the sector the main driver of industrial factory gate prices in Cameroon over the period under review.

According to official data, industrial producer prices in Q4 2022 grew by 8.4% yoy, mainly driven by mining and quarrying (16%), food processing (10.2%), manufacturing of mineral materials, especially cement (6.4%), and manufacturing of paper, cardboard, and printing (13.8%).

The IPPI is an advanced indicator of inflation that measures the evolution of the prices of industrial goods in Cameroon. These prices are the factory gate prices paid to producers, excluding taxes and subsidies, and excluding transport margins. The IPPI is related to the secondary sector and includes extractive industries, manufacturing activities, the production and distribution of electricity and gas, and the production and distribution of water, sanitation, and waste treatment.