Gold pushes June PPI to 3.6%

The Producer Price Index (PPI) which measures the average change over time in the prices received by domestic producers for the production of their goods and services has dropped to 3.6 percent in June from the 3.7 percent recorded in May, Ghana Statistical Service (GSS) data has shown.

Commenting on what caused the marginal decline, Acting Government Statistician, Dr. Baah wadieh, attributed it to the lower ex-factory prices of gold which resulted in drop of inflation in the mining and quarrying sub-sector.

"The push-down effect was primarily on account of lower ex-factory prices of gold in June, compared to similar period last year,” he said.

The PPI is measured using the three main sub-sectors of the local industry, namely: mining and quarrying, manufacturing, and utilities (electricity and water).

Details of the release show that, mining and quarrying was the only sub-sector which recorded a drop in producer inflation rate. The sub-sector’s inflation dropped to 12 percent, a 2.3 percentage points lower than the 14.3 rate recorded in May 2017.

In the manufacturing sub-sector, the 2.4 percent recorded in June was 0.3 percentage points higher than the May figure of 2.1 percent.

Also in the utilities sub-sector, the June rate was 0.1 percentage point higher the 1.2 percent recorded in May.

Seven groups in the manufacturing sub-sector recorded rates higher than the sector’s 2.4 average.