Ex-Factory Prices Drop To 19%

Ex-factory prices for goods and services have decreased to 19 percent in May from 19.5 percent recorded in April 2015, representing 0.5 percentage points year-on-year.

The month-on-month change in producer price between April and May 2015 was 0.8 percent.

Exfactory price refers to the cost a manufacturer charges for a distributor or other buyer to purchase products directly from the source.

Dr. Philomena Nyarko, Government Statistician, who made this known at a press conference in Accra, said in May 2015, the producer price inflation in the mining and quarrying sub-sector decreased by 1.7 percent over the April 2015 rate of 27.1 percent to record 25.4 percent in May 2015.

She said the utility sub-sector recorded an inflation rate of 20.6 percent in May 2015, representing a marginal decrease of 0.1 percent over the April 2015 rate of 20.7 percent.

Petroleum Sector
Dr. Nyarko said the inflation rate in the petroleum sub-sector was 48.2 percent in May 2014.

‘Thereafter, the rate fluctuated until November, 2014 when it recorded 61.1 percent. Since then, the rate has steadily declined to record -8.7 percent in March 2015 and subsequently -9.6 percent in May 2015 as a result of base drift effect and the decrease in ex-refinery prices of petroleum products,’ she said.

Manufacturing Sector
Dr. Nyarko said during the month of May 2015, 10 out of the 16 major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 16.8 percent.

She said manufacture of paper and paper products recorded the highest inflation rate of 55.6 percent while the manufacture of coke and refined petroleum products recorded the lowest producer price inflation rate.

The monthly changes in the producer price index indicated that mining and quarrying recorded the highest inflation rate of 2 percent, followed by the manufacturing sub-sector with 0.8 percent.

The utilities sub-sector recorded the lowest inflation rate of 0.1 percent.

By Cephas Larbi
[email protected]

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