Producer Price Inflation inches up

The Producer Price Inflation (PPI) rate for November this year was 9.9 per cent, according to the Ghana Statistical Service.

This indicates that between November 2018 and November 2019 (year-on-year), the PPI increased by 9.9 per cent, representing a 1.0 percentage point increase in producer inflation relative to the rate recorded in October 2019, of 8.9%.

The month-on-month change in producer price index between October 2019 and November 2019 was 0.3 per cent.

Sub-sectoral performance

The producer price inflation in the mining and quarrying subsector decreased by 0.5 percentage points over the October 2019 rate, of 34.4 per cent to record 33.9 per cent in November 2019. The producer price inflation for manufacturing, which constitutes more than two-thirds of total industry, increased by 1.4 percentage points to record 4.5 per cent. The utilities sub-sector recorded inflation rate of 12.7 per cent for November 2019, indicating a slight increase of 0.1 percentage point over the October 2019 rate of 12.6 per cent.

Trends

In November 2018, the producer price inflation rate for all industry was 6.5 per cent. The rate declined to 3.4 per cent in January 2019. Thereafter, it resumed an upward trend to record 7.1 per cent in April 2019, but declined to 6.7 per cent in May 2019. Since then, it increased consistently to record 10.2 per cent in August 2019, but declined to 8.9 per cent in October, 2019. The rate increased to 9.9 per cent in November 2019.

Manufacturing Sector

During the month of November 2019, eight out of the 16 major groups in the manufacturing subsector recorded inflation rates higher than the sector average of 4.5 per cent. Manufacture of machinery and equipment recorded the highest inflation rate of 24.7 per cent, while Manufacture of coke, refined petroleum products and nuclear fuel recorded the least inflation rate of -1.7 per cent.

Petroleum Price Index

The producer inflation rate in the petroleum subsector was 30.6 per cent in November 2018. The rate decreased continuously to record 3.8 per cent in January 2019. Thereafter, the rate increased consistently to record 17.2 per cent in April 2019, but declined to 1.2 per cent in June 2019.

However, it increased to 3.1 per cent in August 2019 but declined consistently to record -5.7 per cent in October 2019. The rate increased to record -1.7 per cent in November 2019.