December PPI slows on oil price drop

Philomena Nyarko PixThe annual producer price inflation (PPI), slowed to 34.2 per cent in December from a revised figure of 37.6 per cent in November, as oil prices fell in the last month of 2014, the Ghana Statistical Service (GSS), has said.

According to the GSS, the main driver of the slowdown in the PPI is linked to a global fall in the oil price, by a half.

Compared to an average inflation in the African region, the December figure is high, an indication of fiscal challenges facing the country.

Mr. Baah Wadieh, Deputy Government Statistician, told a news conference in Accra that inflation in the petroleum sector fell to 30.9 per cent in December from 61.1 per cent the previous month,

He said: “The manufacture of refined petroleum led the decline and it heavily influenced the index.”

PPI is an advance indicator of consumer price inflation which rose to a four-year high of 17 per cent in November and remained unchanged last month.

Ghana is seeking financial assistance from the International Monetary Fund to stabilise an economy whose growth is led by exports of gold, cocoa and oil.

The government hopes to seal a deal soon with the fund for financial assistance to help an economy struggling with a high budget deficit, inflation that escalated last year and a currency that fell 31 per cent in 2014.

Print Friendly

Leave a Comment