Producer Price Inflation Records Highest Rate
Dr Philomena Nyarko, Acting Government Statistician
Producer price inflation recorded 47.4 percent in July 2014 year-on-year, representing a 14.3 percentage point increase in producer inflation relative to 33.1 percent in June 2014.
The rate is the highest since January 2010. The month-on-month change in producer price index between June 2014 and July 2014 was 10.2 percent.
The Producer Price Index (PPI) measures the average change over time in the prices received by domestic producers for the production of their goods and services.
The PPI for Ghana reports the producer price changes since September 2006, as well as the annual year-on-year and monthly inflation rates for all industry (mining and quarrying, manufacturing and utilities) for the last twelve months.
In July 2014, the producer price inflation in the Mining and Quarrying sub-sector increased by 13.6 percentage points over the June 2014 rate of 37.3 percent to record 50.9 percent in July 2014.
Manufacturing, which constitutes more than two-thirds of total industry, increased by 13.2 percentage points to record 40.3 percent.
The rate for the utilities sub-sector increased by 76.8 percent in July 2014, representing a 19.8 percentage point increase over the June 2014 rate.
In July 2014, three out of the 16 major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 40.3 percent.
Manufacture of coke, refined petroleum and nuclear fuel, recorded the highest inflation rate of 77.3 percent whilst producer prices in the manufacture of machinery and equipment recorded the lowest producer price inflation rate.
From July 2012, the inflation rate in the petroleum sub-sector increased consistently to record 33.6 percent in September 2013.
The rate fluctuated between October and December 2013 after which it increased to record 56.1 percent in February 2014.
The rate declined to record 44.7 percent in March 2014 but started rising in April 2014 to record 48.2 percent in May 2014.
In June, 2014 however, the rate declined to record 44.7 percent as a result of the base drift effect from the increase in the prices of petroleum products in June 2013.
However, in July 2014, the rate increased to 77.3 percent as a result of increases in petroleum prices.
By Cephas Larbi
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