Producer Price Inflation rate falls to 9.3 percent in July

The Producer Price Inflation (PPI) rate fell slightly in July to 9.3 percent compared with a revised 9.5 percent recorded in June.

The month-on-month change in producer price index between June 2020 and July 2020 was 1.7 percent.

The Ghana Statistical Service explained that the marginal decrease in all Industry Inflation Rate from 9.5 percent in June 2020 to 9.3 percent in July 2020 was as a result of the decline in inflation rate in the Utility sub-sector.

This was contained in a statement from the Ghana Statistical Service and copied to the Ghana News Agency in Accra on Wednesday.

The Mining and Quarrying sub-sector recorded the highest year-on-year producer price inflation rate of 38.2 percent, followed by the utility sub-sector with 5.8 percent.

It said the decrease in the Utility sub-sector inflation rate from 12.0 percent in June 2020 to 5.8 percent in July 2020 was as a result of base drift effect.

“The base drift is as a result of increases in electricity prices by 11.2 percent and water by 8.0 percent on July 1, 2019,” it said.

The Manufacturing sub-sector recorded the lowest year-on-year producer inflation rate of 4.4 percent.

For the monthly changes, the mining and quarrying sub-sector recorded the highest inflation rate of 7.2 percent, followed by manufacturing sub-sectors with 0.8 percent.

The Utility sub-sector recorded no inflation rate in July 2020.

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