25 July 2014

Ghana: GSS Releases Producer Price Index (PPI) for June 2014

press release

Between June 2013 and June 2014, the country's year-on-year Producer Price Inflation (PPI) increased by 33.1 per cent, representing an increase in producer price inflation by 0.1 percentage points, relative to the 33.0 per cent rate recorded in May 2014.

Government Statistician, Dr Philomena Nyarko, who disclosed this at a news conference in Accra, yesterday, added that the month-on-month change in producer prices between May 2014 and June 2014 was 0.7 per cent.

Dr Nyarko said in June 2014, the PPI in the mining and quarrying sub-sector increased by 2.1 percentage points over the May 2014 rate of 35.2 per cent, to record 37.3 per cent.

She said the manufacturing sector, which constituted more than two-thirds of total industry, declined by 0.4 percentage points to record 27.1 per cent while the rate for the utilities sub-sector increased by 0.1 percentage points to record 56.9 per cent in June 2014.

She said during the twelve-month period from June 2013 to June 2014, the highest year-on-year inflation rate of 33.1 per cent for all industry was recorded in June 2014.

Furthermore, she said, between June and August 2013, the rate declined continuously to record the lowest rate of 4.7 per cent in August 2013, inching up to record 5.8 per cent in September 2013.

Dr Nyarko said the PPI had subsequently increased consistently over the last eight months to record 33.1 per cent in June 2014, the highest in four years, since January 2010.

He said in the month of June 2014, five out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 27.1 per cent while the manufacture of machinery and equipment recorded the highest inflation rate of 76.0 per cent, with producer prices in the manufacture of wood and products of wood, except furniture, and the manufacture of articles of straw and plaiting materials recorded the lowest inflation rate of 2.3 per cent over the one-year period.

In the petroleum sub-sector, she said, from June 2013, the PPI increased consistently to record 33.6 per cent in September 2013, fluctuated between October and December 2013, after which it increased consistently to record 56.1 per cent in February 2014, declined to record 44.7 per cent in March 2014 and started rising in April 2014 to record 48.2 per cent in May 2014, and declined to record 44.7 per cent in June 2014 as a result of the basis drift effect from the increases in the prices of petroleum products in June 2013.

According to Dr Nyarko, the utilities sub-sector recorded the highest year-on-year producer price inflation of 56.9 per cent, followed by mining and quarrying sub-sector which recorded a PPI of 37.3 per cent, with the manufacturing sub-sector following at 27.1 per cent.

He said the monthly changes in the PPI indicated that the manufacturing sub-sector recorded a monthly inflation rate of 0.8 per cent while mining and quarrying sub-sector recorded 0.7% with the utilities sector recording the lowest monthly rate of 0.2 per cent.

The PPI measures the average change over time in the prices received by domestic producers for the production of goods and services.

The PPI for Ghana reports the producer price indices with reference to September 2006, the base period.

Source: ISD (G.D. Zaney)

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