Ghana: Producer Price Inflation Drops to 9.6 Percent in October

24 November 2023

The Producer Price Inflation (PPI) fell to 9.6 per cent in October 2023 from 25.1 per cent in September, data from the Ghana Statistical Service (GSS) has revealed.

The monthly producer inflation rate for October stood at 1.1 per cent from 2.7 per cent in September.

Data on the October PPI copied to the Ghanaian Times in Accra yesterday said the overall PPI rate for October 2023 and the sub-sector industry, construction and services were provisional and would be updated as additional information was gathered.

It said the sharp drop in the PPI rate was influenced by industry, which saw PPI rate from 26.4 per cent in September to 9.0 per cent in October.

This rate represents a 17.4 percentage point decrease in industrial producer inflation relative to the rate recorded in September 2023, which stood at 26.4 per cent.

The month-on-month change in the industry PPI between September 2023 and October 2023 was 1.2 per cent.

"The industrial producer price inflation in the Mining and Quarrying sub-sector decreased by 23.1 percentage points over the September 2023 rate of 33.5 perbcent to 10.4 percent in October 2023. The Manufacturing sub-sector decreased by 12.8 percentage points to 3.2 per cent in October 2023," it said.

It said, "Electricity and gas recorded a 39.6 per cent inflation rate for October 2023, a decrease of 5.4 percentage points over the September rate of (45.0 per cent). The Water supply, Sewerage, and Waste Management Sub-sector recorded an inflation rate of 25.8 per cent."

The construction sector saw a drop in PPI from 48.9 per cent in September to 44.0 per cent in October.

The GSS said the civil engineering sub-sector recorded the highest year-on-year producer price inflation rate of 67.0 percent, followed by the specialised construction sub-sector with 7.3 per cent, and the construction of buildings sub-sector recorded the lowest year-on-year producer inflation rate of 4.3 per cent.

"The construction of buildings sub-sector recorded the highest monthly inflation rate of 1.1 per cent, followed by the specialised construction activities sub-sector with 0.5 per cent, and the civil engineering sub-sector recorded the lowest month-on-month inflation rate of 0.1 per cent in October 2023," the data revealed.

For the services, the sector recorded a producer inflation of 11.7 per cent in October from 16.1 per cent in September.

Under the services sector, the data said publishing activities, 1.4 per cent, motion picture, video and television (1.5 per cent), warehousing and support activities (4.0 per cent), computer programming and consultancy services (7.3 per cent), land transportation and transport via pipelines (8.0 per cent), accommodation (9.0 per cent) and telecommunication (11.7 per cent) recorded PPI rate above the national average of 9.6 per cent.

The data said information service activities (100 per cent), air transport (54.4 per), postal and courier activities (42.8), water transportation (34.5 per cent), programming and broadcasting activities (29.6 per cent) and food and beverage service activities (23.7 per cent) recorded PPI above the national average.

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