Qatar’s inflation based on producer price index (PPI) surged 14.60% during the first quarter (Q1) of this year compared to last quarter in 2010, mainly on a double-digit rise in the price of crude oil, condensate and natural gas, according to the Qatar Statistical Authority (QSA).

The PPI, which is calculated using the average of 2006 prices as base, shot up year-on-year by an average 24.9% in Q1 2011 due to the combined effect of 25% rise in mining and 14% in manufacturing, said the QSA, which launched the index in December last year.

The PPI for mining, which carries the maximum weight of 77%, recorded a quarter-on-quarter increase of 17.1% in Q1 following a 20.3% jump in crude oil price, 15.1% in natural gas and 10.5% in condensate; even as stone, sand and clay prices fell 4.3%.

On a year-on-year comparison, the mining sector reported a 28.6% jump on account of 34.8% rise in the prices of crude oil, 20.7% in condensate and 20% in natural gas; while those of stone, sand and clay fell 4.4%.

The manufacturing sector, with a weight of 21% in the PPI basket, witnessed a quarter-on-quarter increase of 6.5% in Q1 2011 due to a 9.5% rise in the price of refined petroleum products, 7.8% in beverages, 5.1% in grain mill and other product and 4.7% in basic chemicals.

However, dairy products became cheaper by 3.2%, cement and glass products by 1.1% and metal product, machinery and equipment by 0.8%.

The manufacturing sector PPI was up 13.9% year-on-year; following 29.9% rise in beverages, 18.2% in refined petroleum products, 11.4% in basic chemical, 10.9% in metal product, machinery and equipment and 2.4% in grain mill and other product whereas cement and glass products’ price fell 9.7% and dairy product 1.9%.

The electricity and water group, which has a 2% weight in the PPI basket, saw its index rise 0.9% quarter-on-quarter in Q1 2011 mainly due to a 2.4% jump in price of water. The group index was down year-on-year 0.1% on account of a similar fall in the price of electricity.