Dr Philomena Nyarko
Ex-factory prices of goods for all industry increased on average by 48.3 percent in August 2014 relative to the price level recorded in August 2013.
This means that the producer price index (PPI) increased by 1.7 percent in August 2014 compared to July 2014.
Dr Philomena Nyarko, Government Statistician, who disclosed this to journalists in Accra yesterday, said the utilities (electricity and water) sub-sector recorded the highest year-on-year producer price inflation rate of 75.8 percent, followed by the mining and quarrying sub-sector with 50.7 percent.
The manufacturing sub-sector recorded an inflation rate of 41.9 percent.
The PPI measures the average change over time in the prices received by domestic producers for the production of their goods and services.
With respect to the monthly changes, Dr Nyarko said the manufacturing sub-sector recorded a monthly inflation rate of 2.4 percent while mining and quarrying recorded 1.3 percent.
The utility sub-sector recorded the lowest monthly rate of -0.5 percent.
The Ghana cedi has recovered against major currencies recently.
Some traders, in an interview with BUSINESS GUIDE, expressed the hope that the local currency will sustain its bullish performance against the foreign currencies to help reduce the cost of imported raw materials and ultimately lessen the producer price index rate.
‘If there is depreciation in the exchange rate, then the price of imported raw materials will increase. But if the Cedi appreciates, the cost of inputs will decrease and producer price inflation will fall. Also, if there is a high rate of economic growth, this will cause rising demand for raw materials and will tend to push up prices,’ an analyst explained to this paper.
By Samuel Boadi
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