Producer Price Index increases by 48.3 per cent

Dr Philomena Nyarko, Government Statistician on Wednesday said the year-on year-on producer price index has recorded an increase by 48.3 per cent from August 2013 to August 2014.

This she said represents a 1.1 per cent point increase in producer inflation relative to 47.2 per cent rate recorded in July 2014.

Dr Nyarko who said this at news conference in Accra noted that the month-on-month change in producer price index from July 2014 to August 2014 was 1.7 per cent.

She said the utility sub-sector recorded the highest year-on-year producer price inflation rate of 75.8 per cent flowed by the mining and quarrying sub-sector with 50.7 per cent whilst the manufacturing sub-sector recorded an inflation of 41.9 per cent.

Monthly changes in the producer price index indicated the manufacturing recorded a monthly inflation rate of 2.4 per cent while mining and quarrying recorded 1.3 per cent and utility sub-sector recorded the lowest monthly rate of -0.5 per cent.

Dr Nyarko said in August 2014, the producer price inflation in the mining and quarrying sub-sector decreased by -0.2 per cent over the July 2014 rate of 50.9 per cent, to record 50.7 per cent in August 2014.

Manufacturing, which constitutes more than two-thirds of total industry increased by 1.7 per cent points to record 41.9 per cent, adding that the rate for the utility sub-sector recorded an inflation of 75.8 per cent in August suggesting 1.0 percentage point decrease over the July 2014 rate, Dr Narko said.

The trend in the year-on-year inflation in ex-factory prices of goods and services of 48.3 per cent recorded in August 2014 was the highest during the 12-month period, which is August 2013 to August 2014.

She explained that in August 2013, the rate declined to the lowest level of 4.7 per cent. In September 2013 however, the rate inched up to record 5.8 per cent and subsequently the producer price inflation rate increased consistently over the last 11 months to record 48.3 per cent in August 2014 which is the highest since January 2010.

Dr Nyarko said from August 2013, the inflation rate in the petroleum sub-sector increased consistently to record 33.6 per cent in September 2013. The rate fluctuated between October and December 2013 but started rising in April 2014 to record 48.2 per cent in May 2014.

In June, 2014 however the rate declined to record 44.7 per cent as a result of the base drift effect from the increase in the prices of petroleum products in June 2013.

In July 2014, the rate increased to record prices but in August 2014, the rate declined to record 68.6 per cent due to the base drift effect.

According to her, during the month of August 2014, four out of 16 major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 41.9 per cent.

Manufacture of coke, refined petroleum and nuclear fuel recorded the highest inflation rate of 68.6 per cent whilst producer prices in the manufacture of machinery and equipment recorded the lowest producer price inflation rate.