February PPI increases to 5.4 per cent

pGhana’s Producer Price Inflation rate for February rose to 5.4 per cent from 3.4 in January, representing an increase of two percentage points, the Ghana Statistical Service (GSS) said in Accra yesterday.

Addressing a news conference, the Acting Deputy Government Statistician, David Yenukwa Kombat attributed the rise in the PPI to the depreciation of the Ghanaian Cedi.

The Ghanaian Cedi continues to struggle against its international peers and had fallen by 11 percent between January and February this year.

Mr Kombat explained that producer inflation for mining and quarrying sub-sector rose to 13.4 percent in February from 8.9 per cent in January this year, recording the highest year-on-year inflation rate this year.

“Manufacturing which constitutes more than two-thirds of total industry increased by 2.0 percentage points to record 5.0 percent,” he said, adding that the utilities sub-sector recorded inflation rate of 0.2 per cent, compared to a zero inflation rate recorded in January 2019.

In February, five of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 5.0 per cent the GSS said; adding that manufacture of basic metals recorded the highest inflation rate of 16.1 per cent while manufacture of machinery and equipment recorded 0.0 per cent.

With respect to the monthly changes, the GSS said mining and quarrying recorded the highest inflation rate of 4.7 per cent, followed by the manufacturing sub-sector with 1.9 per cent, and the Utilities sub-sector recorded the lowest inflation rate of 0.1.

He said PPI for the Petroleum sub-sector rose to 8.9 per cent in February from 3.8 per cent in January this year.

By Kingsley Asare

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