Producer Price Inflation hits 10.3%

The year on year Producer Price Inflation (PPI) for July has hit 10.3 %.

The PPI for July therefore increased by 2.7 percentage points compared to that recorded in June (7.6 %).

Figures released by the Ghana Statistical Service also indicate that the month-on-month change in producer price index between June and July 2016 was 0.9 percent.

The GSS also revealed that the PPI for the mining and quarrying sub-sector recorded the highest increase of 30.3 percentage points over the June 2016 rate of 0.1 percent, to record 30.4 percent in July 2016.

Meanwhile the producer inflation for manufacturing, which constitutes more than two-thirds of total industry, decreased by 2.7 percentage points to record 1.0 percent.

Also, the utilities sub-sector recorded an inflation rate of 36.6 percent in July 2016 indicating a slight increase of 0.1 percentage point over the June 2016 rate of 36.5 percent.

Manufacturing Sector
During the month of July 2016, thirteen out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 1.0 percent.

Tanning and dressing of leather recorded the highest inflation rate of 39.4 percent, while manufacturing of coke, refined petroleum products and nuclear fuel recorded the lowest producer price inflation rate of -19.3%.

Trends
In July 2015, year-on-year inflation in ex-factory prices of goods and services was 10.2 percent.

Subsequently, the rate declined to 2.9 percent in October 2015.

However, it inched up slightly to record 3.0 percent in November 2015, and then increased to 11.0 percent in December 2015 and to 16.3 percent in January 2016.

The rate decreased to 14.5 percent in February 2016 and continued its downward trend to record 11.2 percent in April 2016.

In May 2016, it dropped further to 11.0 percent and then to 7.6 percent in June 2016, but increased again to 10.3 percent in July, 2016.

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By: Pius Amihere Eduku/citibusinessnews.com/Ghana