Producer Price Inflation Shoots Up

SONY DSCThe country’s annual Producer Price Inflation (PPI) year-on-year increased by 47.4 per cent in July 2014, from 33.1 per cent recorded in June, the highest since 2010, the Ghana Statistical Service (GSS) has announced.

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

Announcing the July PPI figures at a news conference in Accra yesterday, the Government Statistician, Dr Philomena Nyarko said the increase in the July PPI,   was as a result of the high inflation rate recorded by the manufacturing sector, which constitutes more than two thirds of total industry.

The Government Statistician explained that during the month of July 2014, three of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 40.3 per cent.

‘’The manufacture of coke, refined petroleum and nuclear fuel recorded the highest inflation rate of 77.3 per cent,’’ Dr Nyarko said, and attributed the problem to the increase in utility prices.

Dr. Nyarko said the utilities sub-sector recorded the highest year-on-year producer price inflation rate of 76.8 per cent, followed by the mining and quarrying sub-sector with 50.9 per cent.

She explained that in July 2014, the producer price inflation in the mining and quarrying sub-sector increased by 13.6 per cent over the figure recorded in June rate of 37.3 per cent, to record 50.9 per cent in July 2014.

“The monthly changes in the producer price index indicated that utilities recorded a monthly inflation rate of 12.6 per cent while manufacturing recorded 10.8 per cent,” she said, adding that “the mining and quarrying sub-sector recorded the lowest monthly rate of 4.7 per cent”.

She said the month-on-month change in the PPI stood at 10.1 per cent.

Responding to the former Deputy Governor of the Bank of Ghana, Dr. Mahamudu Bawumia’s assertion that the statistical figures put out by the GSS are not correct, Dr. Nyarko said the GSS “does not cook figures”.

“We wish to state that the GSS is mindful of the need to produce and disseminate accurate data to enhance the formulation and implementation of relevant policies,” she said, and intimated “in the discharge of our duties, we are guided by our core values and ethics as well as the United Nations Fundamental Principles of Official Statistics and the African Charter of Statistics”.

Dr. Nyarko said the approach adopted by Dr. Bawumia to calculate the  annual rate inflation figures was “methodically inaccurate and misleading”.

She said the GSS was prepared to offer further clarifications to any individual or group of persons on the work “we do”.

By Kingsley Asare

email
Print Friendly

Leave a Comment