(Business in Cameroon) - Production costs fell by 8.6% year-on-year in the first quarter of 2023 in Cameroon’s extractive industries, according to the Industrial Producer Price Index (IPPI) published by the National Institute of Statistics (INS). This is the second consecutive decline recorded in the sector, following the 1.9% drop in the fourth quarter of 2022.
This downward trend confirms the sharp increases in factory gate prices recorded in the Cameroonian extractive sector during the first three quarters of 2022. This sustained and significant rise in production costs was due to the Russian invasion of Ukraine in February 2022.
"This crisis disrupted global energy markets and led to a significant increase in oil and gas prices, impacting producer prices in the extractive industries. Over time, however, energy markets have stabilized, leading to a decline in producer prices in the extractive industries," explains the INS.
As a reminder, the IPPI measures evolutions in the prices of industrial goods produced on Cameroonian territory. These are ex-factory prices paid to producers, excluding taxes and subsidies, and excluding transport margins. The IPPI concerns the secondary sector. It covers the following activities: mining and quarrying; manufacturing; electricity and gas production and distribution; water production and distribution; sanitation, waste treatment, and remediation.