Business News of 2014-04-01

Utilities sub-sector pushes producer inflation up

Hikes in utility prices pushed up inflation to 27.1 per cent from the producer’s perspective in February 2014, compared to 23.3 per cent in January 2014.

Data from the Ghana Statistical Service (GSS), the national data compilation body, indicates that the utilities sub-sector recorded the highest inflation rate of 55.7 per cent, with manufacturing following with 27.2 per cent and mining and quarrying lagging behind with 3.1 per cent.

Producer inflation looks at the average change over time in the prices received by the domestic producers for the production of their goods and services.

The Government Statistician, Dr Philomena Nyarko, giving highlights at a news conference in Accra on March 26, said the producer inflation in the mining and quarrying sub-sector increased by 8.9 percentage points over the January 2014 rate of -5.8 per cent to record 3.1 per cent.

“Manufacturing, which constitutes more than two-thirds of total industry, increased by 3.0 percentage points to record 27.2 per cent. The rate for the utilities sub-sector increased marginally to record 55.7 per cent in February 2014,” she said. Producer inflation trend

During the 12-month period, that is, from February 2013 to February 2014, the highest year-on-year inflation rate of 27.1 per cent for all industries was recorded in February 2014.

Between April and August 2013, the rate declined continuously to record the lowest rate of 4.7 per cent.

“In September 2013, however, the rate inched up to record 5.8 per cent. Subsequently, the producer price inflation rate has increased consistently over the last five months to record 27.1 per cent in February 2014; the highest in four years,” she explained.

Meanwhile, inflation rate in the petroleum sub-sector has also been on the rise, with some fluctuations along the line, and has regained its momentum to steadily rise to its current rate of 56.1 per cent in February 2014.