January producer price inflation falls to 7.7%

Mr. Baah Wadieh

Mr. Baah Wadieh

Ghana’s producer price inflation fell to 7.7 per cent year-on-year in January from a revised figure of 8.7 per cent the previous month, the statistics office said on Wednesday.

Ghana’s producer price inflation (PPI) fell from 8.7 per cent year-on-year in December 2017 to 7.7 per cent in January 2018, the Acting Government Statistician, Baah Wadieh has announced.

According to the statistics office, the fall was influenced by a drop in the producer price inflation rate for the manufacturing sector.

The drop represents a 1.0 percentage point decrease in the producer inflation relative to the 8.7 per cent recorded in December last year, while the  month-on-month change in the Producer Price Index between December and January 2018 was 1.2 per cent.

Mr Wadieh who announced the PPI rate for January in Accra yesterday, said the new rate was provisional and would be revised when more data was gathered.

He explained that the producer inflation for manufacturing, which constituted more than two-thirds of total industry, decreased by 1.3 percentage  points, to record 7.3 per cent.

The Acting Government Statistician said six out of the major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 7.3 per cent.

They are the manufacturing of coke and refined petroleum products (29.0 per cent), manufacturing of machinery and equipment (26.1 per cent), manufacture of motor vehicles, trailers and semi-trailers (19.8 per cent), manufacture of furniture (12.3 per cent) and manufacture of textiles (10.0 per cent).

Mr Wadieh said the utilities sub-sector recorded the lowest year-on-year producer inflation rate of 0.2 per cent.

“The mining and quarrying sub-sector recorded the highest year-on-year producer inflation rate of 18.3 per cent,” he said.

On the petroleum sub-sector, the Acting Government Statistician said the inflation rate for the sector decreased from 36.4 per cent in December 2017 to 29.0 per cent in January 2018.

The PPI measures the average change over time in the prices received by domestic producers for the production of their goods and services. The PPI for Ghana reports the price indices with reference to September 2006, the base period.



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