September PPI records 9.7%

The Producer Price Inflation (PPI) which measures the changes in prices by domestic producers over a period of time has recorded 9.7 percent for September 2016.

The rate represents a 1.4 percentage point decrease in the producer inflation relative to the rate recorded in August 2016 which was 11.1 percent.

Speaking to journalists at the premises of the Ghana Statistical Service, the Deputy Government Statistician, Mr. Baah Wadieh explained that the decrease in the month-on-month change of 1.4 percent was due to a drop in gold prices on the world market, which affected the manufacturing, and mining and quarrying sub sector.

“The slight drop in all industry inflation rate from 11.1 percent in August 2016 to 9.7 percent in September was the result of the decrease in inflation rate for Manufacturing, and Mining and Quarrying subsector .That is, the inflation rate for manufacturing decreased and that Mining and Quarrying also decreased and that accounted for the decrease that we saw from 11.1 percent in august to 9.7 percent   in September 2016,” he said.

Manufacturing sub-sector

He stated that the thirteen out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 1.3 percent

According to him, the manufacturing of woods and products of wood and cork recorded the highest inflation rate of 58.1 percent while manufacturing of coke, refined petroleum products and nuclear fuel recorded the lowest producer price inflation rate of -14.8 percent.

“The decrease is mainly the result of decrease in the inflation rate for the manufacture of chemicals and chemical products. The Producer Price Inflation rate for the manufacture of chemical and chemical products decreased from 28.7 percent in August to 5.2 percent in September 2016, as a result of base drift effect,” he explained.

Petroleum sub-sector

On Petroleum Price Index, Mr. Wadieh stated that  inflation rate in the sub-sector, was -27.9 percent in September 2015.

“The rate declined to record -34.5 percent in October 2015. It however, increased to -21.8 percent in December 2015 and further rose to record 3.3 percent in January 2016,” he said, adding that in “February, it declined to 0.5 percent but increased to record 2.9 percent in march 2016 as a result of the base drift effect”.

He stated that in June 2016, the rate decreased to record -4.7 percent and then to 19.3 percent in July 2016, but increased to -16.3 percent in August 2016 and further to -14.8 percent in September.

By: Lawrence Segbefia/citibusinessnews.com/Ghana

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