Ex-Factory Prices Record 10.3%

Dr Philomena Nyarko

Year-on-year producer inflation for all industry was 10.3 percent in July 2016, and the monthly change rate was 0.9 percent.

This rate represents a 2.7 percentage point increase in producer inflation relative to the rate recorded in June 2016 (7.6 percent)

The utilities sub-sector recorded the highest year-on-year producer price inflation rate of 36.6 percent, followed by the mining and quarrying sub-sector with 30.4 percent.

The manufacturing sub-sector recorded the lowest year-on-year inflation rate of 1.0 percent.

The monthly changes in the producer price index indicated that mining and quarrying recorded the highest monthly change rate of 6.4 percent followed by the utilities sub-sector with 0.1 percent.

The manufacturing sub-sector recorded the lowest inflation rate of -0.2 percent.

Manufacturing

During the month of July 2016, 13 out of 16 major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 1.0 percent.

Tanning and dressing of leather recorded the highest inflation rate of 39.4 percent, while manufacture of coke, refined petroleum products and nuclear fuel recorded the lowest producer price inflation rate of -19.3 percent.

Petroleum

The inflation rate in the petroleum sub-sector was -6.4 percent in July 2015.

Subsequently, the rate declined to record -34.5 percent in October 2015.

It, however, increased to -21.8 percent in December 2015 and rose further to record 3.3 percent in January 2016.

It then declined to 0.5 percent in February 2016 but increased to record 2.9 percent in March 2016 as a result of the base drift effect.

The rate increased again to 6.5 percent in April 2016 but declined slightly to 6.1 percent in May 2016.

In June 2016, the rate decreased to record -4.7 percent and then to -19.3 percent in July 2016 as a result of the base drift effect.

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By Samuel Boadi

 

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