Producer inflation rises to 10.3 per cent in July

The country’s producer price inflation (PPI) rose from 7.6 per cent in June to 10.3 per cent year-on-year in July, the Statistical Service announced yesterday.

PPI is a major component of consumer inflation, which has for years remained above government targets.

The Statistical Service explained that the July PPI was mainly influenced by rising gold prices.

“The rise was mainly driven by the inflation rate in the mining sector as a result of increases in the price of gold in the world market,” Dr. Philomena Nyarko, Government Statistician said at a news conference in Accra.

According to the Statistical Service, year-on-year producer inflation for utilities for July stood at 36.6 per cent, followed by mining and quarrying at 30.4 per cent.

“The manufacturing subsector was at 1.0 per cent,” Dr. Nyarko added.

Last week, the government said Ghana was on target to halve its fiscal deficit this year as a result of the $918-million IMF deal, in comments apparently designed to allay uncertainty after parliament rejected one of its key components.

Ghana, which exports cocoa, gold and oil, signed the three-year aid deal in April last year to bring down budget deficits, inflation and a high public debt.

The IMF, which is an organisation of 189 countries, works to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.



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