Factory Prices Up

Dr Grace Bediako

Ex-factory prices rose in June 2011 though the Producer Price Inflation (PPI) recorded the lowest inflation rate in the 12-month period.

On month-on-month basis, manufacturing which constitutes more than two-thirds of total industry, increased slightly while mining and quarrying sub-sector dropped and utilities remained virtually unchanged.

However, on year and year basis, mining and quarrying recorded the highest inflation of 30.24 percent followed by manufacturing with 12.10 percent and utilities which recorded 0.27 percent.

According to a provisional data released by the Ghana Statistical Service (GSS) yesterday, the Producer Price Index (PPI), which measures the average change over time in the prices received by domestic producers for the production for their goods and services, rose by 0.47 percent in June 2011, slightly higher than that of April 2011.
The PPI recorded 12.15 percent in June 2011 compared to 24.29 percent in May 2011 on-year-on-year basis.

According to the figures, mining and quarrying, with 13.97 percent share of all industry, recorded the highest inflation rate of 30.24 percent.

Mining of metal ores and non-ferrous metal ores, except uranium and thorium ores, recorded inflation rates above the national average.

Manufacturing, which contributed more than two-thirds to total industry, dropped to 12.10 percent in June 2011 as against 12.42 percent in May 2011.

Nine out of the 16 major groups in the manufacturing sector recorded inflation rates above the manufacturing sector average. Manufacture of motor vehicles, trailers, and semi trailers recorded the highest inflation rate whilst manufacture of fabricated metal recorded a negative change.

Utilities including production, transmission and distribution of electricity as well as collection, purification and distribution of water, recorded the least year-on-year inflation rate.

With regard to Petroleum Price Index, inflation in the petroleum industry remained stable in May 2011.

In January 2011, inflation surged in this industry and recorded 26.08 per cent in March.
However, it has remained stable since that time.

By Charles Nixon Yeboah