Producer Price Inflation rate in February 2021 hits 10.3 percent

The Producer Price Inflation rate for February 2021 hit 10.3 percent for February 2021. This indicates that between February 2020 and February 2021 (year-on-year), the Producer Price Index (PPI) increased by 10.3 percent.

This rate represents a 1.6 percentage point increase in producer inflation relative to the rate recorded in January 2021 (8.7%).

The month-on-month change in the producer price index between January 2021 and February 2021 was -0.1 percent. It declined to 9.0 percent in August 2020.

The rate increased to 9.7 percent in September 2020 but declined consistently to record 7.0 percent in December 2020.

In January 2021, the rate increased to 8.7 percent and inched up to a record 10.3 percent in February 2021.

In February 2021, seven out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 9.8 percent. Manufacture of motor vehicles, trailers, and semi-trailers recorded the highest inflation rate of 40.6 percent, while the Manufacture of machinery and equipment n.e.c. recorded the least inflation rate of 0.0 percent.

However, the producer inflation rate in the petroleum sub-sector was 6.1 percent in February 2020. The rate declined consistently to record 15.4 percent in May 2020.

In June 2020, the rate increased to -4.5 percent but declined to record -5.4 percent in August 2020. Thereafter, it increased to -3.0 percent in September and declined to -5.0 percent in November 2020. The rate increased continuously to a record of 13.7 percent in February 2021.

The year-on-year producer inflation for all industry was 10.3 percent in February 2021; the monthly change rate was -0.1 percent.

The Mining and Quarrying sub-sector recorded the highest year-on-year producer price inflation rate of 24.2 percent, followed by the Manufacturing sub-sector with 9.8 percent.

The Utility sub-sector recorded the lowest year-on-year producer inflation rate of 0.4 percent. The manufacturing sub-sector recorded the highest monthly inflation rate of 0.5 percent, followed by Utility sub-sectors with 0.0 percent. The mining and quarrying sub-sector recorded the least inflation rate of -2.7 percent.

Meanwhile, 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. The PPI for Ghana reports the producer price indices with reference to September 2006, the base period.