Producer Price Index for July jumps to 14.01 per cent

Accra, Aug. 24, GNA – The Producer Price Index (PPI) rose by 1.97 percentage points to close at 14.01 per cent in July 2011 compared to 12.05 per cent recorded in June 2011.

The July 2011 rate of 14.01 per cent was the lowest rate the country recorded in the last 12-month period (July 2010 to July 2011).

On monthly basis, the PPI rose to 1.60 per cent in July as against 0.38 per cent in June 2011.

Mr Magnus Ebo Duncan, Director of Economics and Industrial Statistics Division of Ghana Statistical Service announced this at a press conference in Accra on Wednesday.

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

He said on specific industry basis, the Mining and Quarrying sector recorded an increase of 4.03 per cent to close at 34.18 per cent in July, the Manufacturing sector closed at 14.41 per cent in July, down from 11.99 per cent in June whilst the Utilities sector recorded the lowest inflation rate of 0.29 per cent in July.

Mr Duncan said during the 12-month period (July 2010 to July 2011), industry recorded the highest producer inflation rate in April, which stood at 24.29 per cent.

“From July 2010 to December 2010, the rate ranged between 15.96 per cent and 18.93 per cent. Relatively higher rates between 20.85 per cent and 24.29 per cent were recorded from January to May 2011, before taking a nose dive to 12.05 per cent in June 2011,” he added.

Mr Duncan said nine out of the 16 major groups in the manufacturing sector recorded inflation rates higher than the sector’s average of 14.41 per cent, adding manufacture of machinery and equipment recorded the highest inflation rate of 48.44 per cent whilst manufacture of fabricated metal recorded a negative change in the rate (0.63 per cent).

He said “In January 2011, inflation in the petroleum industry jumped but has remained stable, recording 27.35 per cent in July 2011”.

Mr Duncan attributed the lowest inflation rate in the Utilities sector to the stability of prices.