Factory Prices Go Up

Dr Philomena Nyarko - Acting Government Statistician

Dr Philomena Nyarko – Acting Government Statistician

Producer Price inflation, which measures the average change over time in the prices received by domestic producers for the production of their goods and services, increased to 10.7 percent in March 2013.

The Ghana Statistical Service (GSS), which stated this in its latest Producer Price Index newsletter, said the March figure represents an increase in producer inflation by 1.6 percentage points relative to the rate recorded in February 2012 (9.1 percent).

Consequently, the month-on-month change in producer prices between February 2013 and March 2013 was 2.6 percent.

Announcing the rate at a news conference in Accra yesterday, Baah Wadie, a Deputy Government Statistician, said in March 2013 the producer price inflation in the mining and quarrying subsector decreased by 1.4 percentage points over the February 2013 rate of 7.8 percent to record 6.4 percent.

He said inflation of manufacturing, which constitutes more than two-thirds of total industry, increased to 14.2 percent from a rate of 11.4 percent in February 2013, stating that the rate for the utilities sub-sector was 0.1 percentage point lower than that of February 2013.

Mr Baah Wadie said during the 12-month period (March 2012 to March 2013), the highest year-on-year inflation of 19.1 percent for all industry was recorded in June and October 2012 while the lowest was in February 2013 (9.1 percent).

“From March to May 2012, the producer inflation fluctuated between 16.1 percent and 16.6 percent, and thereafter increased in July 2012 to 19.0 percent. It dropped in August 2012 to 17.8 percent and continued the decline in September 2012 by 1.0 percentage point.

It increased to 19.1 percent in October 2012 and dropped subsequently in November 2012 to 115.8 percent.

Wadie said in December 2012 it increased to 17.1 percent but declined to 11.5 in January 2013. It decreased again to 9.1 in February 2013 and inched up to 10.7 percent in March 2013.

He said during the month of February 2013, five out of 16 major groups in the manufacturing subsector recorded inflation rates higher than the sector average of 14.2, adding that publishing, printing and reproduction of recorded media recorded the highest inflation rate (32 percent) while manufacture of machinery and equipment recorded no inflation rate.

Wadie said during the last 12 months, the producer inflation in the petroleum sub-sector exhibited a downward trend until March 2013 when it increased by 12.5 percentage points.

He said the highest inflation rate of 20.7 was recorded in March 2012 and the lowest (-1.5 percent) in February 2013.

Wadie said the figures for the month of March 2013 are provisional and subject to revision.

By Cephas Larbi