Output Prices for Local Manufacturers Tick Up in April

• According to the Statistical Institute of Jamaica (STATIN), the Producer Price Index (PPI) for the Mining & Quarrying industry for April 2026 increased by 0.6%. Similarly, there was a 2.6% increase in the index for the Manufacturing industry. This suggests that the average price of finished goods leaving local factories rose in April, before hitting retail shelves or factoring in distribution markups.
• The increase in the Mining & Quarrying industry was mainly due to a 0.7% rise in the index for the major group, ‘Bauxite Mining & Alumina Processing’. In the Manufacturing industry, the upward movement was primarily influenced by increases in the index for the major groups: Food, Beverages & Tobacco’ (0.2%) and ‘Refined Petroleum Products’ (11.7%).
• That said, for the period April 2025 – April 2026, the point-to-point index for the Mining & Quarrying industry decreased by 7.1%. The decrease was largely attributed to a 7.5 per cent fall in the index for the major group ‘Bauxite Mining & Alumina Processing’. Despite an increase in the monthly index in this division, the index was down due to record exports from Guinea, the world’s largest exporter of bauxite
• Over the same period, the point-to-point index for the Manufacturing industry increased by 8.2%, driven mainly by upward movements in the index for the major groups ‘Food, Beverages & Tobacco’ (3.1%) and ‘Refined Petroleum Products’ (30.4%).
• Looking ahead, movements in the Producer Price Index (PPI) are expected to remain heavily influenced by trends in the Mining & Quarrying Index, despite higher energy prices placing upward pressure on the Manufacturing Index. In particular, the projected bauxite and alumina surplus in Guinea during 2026 could continue to weigh on prices amid softer demand conditions and China’s strict 45 million-ton production cap on primary aluminium output. However, recent export restrictions implemented by the Guinean government could help to moderate some of the downward pressure on prices.
• That said, the Manufacturing index may continue to experience upward pressure, with the crude price remaining elevated as tensions in the Middle East intensify. Furthermore, Liquefied Natural Gas (LNG), which accounts for 70% of local power generation, has seen prices climb by 143% since the onset of the conflict. The resulting increase in energy costs is likely to feed directly into manufacturing expenses through higher production costs, with further volatility expected.

(Sources: STATIN & NCBCM Research)