August Producer Price Inflation is 8.1%

Prof. Samuel Kobina Annim

The Producer Price Inflation rate for August 2021 was 8.1 per cent, the Ghana Statistical Service has announced.

This rate indicates that between August 2020 and August 2021 (year-on-year), the PPI increased by 8.1 per cent.

This rate represents a 0.3 percentage point decrease in producer inflation relative to the rate recorded in July 2021 (8.4%).

The month-on-month change in the producer price index between July 2021 and August 2021 was 0.5 per cent.

The producer price inflation in the Mining and Quarrying sub-sector decreased by 5.4 percentage points over the July 2021 rate of 2.2 per cent to record -3.2 per cent in August 2021.

The producer inflation for the Manufacturing sub-sector, which constitutes more than two-thirds of the total industry, increased by 0.8 percentage points to record 12.8 per cent.

The utility sub-sector recorded a 0.2 per cent inflation rate for August 2021.

Trends

In August 2020, the producer price inflation rate for all industry was 9.0 per cent.

The rate increased to 9.7 per cent in September 2020 but declined consistently to a record 7.0 per cent in December 2020.

In March 2021, the rate increased to 13.0 per cent, but in April 2021, it declined to 10.9 per cent.

In May 2021, the rate rose to 11.8 per cent but decreased continuously to 8.1 per cent in August 2021.

Manufacturing Sector

In August 2021, four out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 12.8 per cent.

Manufacture of coke, refined petroleum products and nuclear fuel recorded the highest inflation rate of 25.3 per cent, while the Manufacture of textiles recorded the least inflation rate of 0.3 per cent.

Petroleum Price Index

The producer inflation rate in the petroleum sub-sector was -5.4 per cent in August 2020. The rate fluctuated between September 2020 (-0.3%) and December 2020 (-4.0%).

Subsequently, the rate increased continuously to pick at 31.0 per cent in March 2021 but declined to 23.9 per cent in June 2021. The rate rose to a record 25.3 per cent in August 2021.

Highlights

The year-on-year producer inflation for all industry was 8.1 per cent in August 2021; the monthly change rate was 0.5 per cent. The Manufacturing sub-sector recorded the highest year-on-year producer price inflation rate of 12.8 per cent, followed by the Utility sub-sector with 0.2 per cent.

The Mining and Quarrying sub-sector recorded the lowest year-on-year producer deflation rate of -3.2 per cent.

The manufacturing sub-sector recorded the highest monthly inflation rate of 0.9 per cent, while the utility sub-sector recorded no change in inflation (0%).

The mining and quarrying sub-sectors recorded the least monthly deflation rate of -0.4 per cent.