Producer price inflation drops

EX-FACTORY prices reduced from the 7 percent recorded in July 2012 to 5 percent in July 2013 year-on-year, representing a decrease of 2.0 percentage points.

According to Government Statistician, Dr Philomena Nyarko, who officially launched the producer price index (PPI) for July 2013, the month-on-month change in producer prices between June 2013 and July 2013 was also -0.5 percent.

Dr. Nyarko said the producer price inflation in the Mining and Quarrying subsector decreased substantially by 11.7 percent.

She noted that producer price inflation for the manufacturing sector which constitutes more than two-thirds of total industry increased to 10.9 percent from a rate of 10.6 percent in June this year, adding that the rate for the utilities sub-sector decreased marginally by 0.39 percentage points in July 2013.

She further said during the 12 months period from July last year to July this year, the highest year-on-year inflation for all industry was recorded in October with 19.1 percent while July 2013 recorded the lowest.

Dr. Nyarko indicated that between July and November 2012, the producer price inflation fluctuated until December 2012.

She however said that from December 2012 to February 2013, the rate declined to 9.1 percent but increased steadily to record 10.6 percent in March this year and subsequently declined consistently to record 5.0 percent in July 2013.

“During the month of July 2013, eight out of the 16 major groups in the manufacturing subsector recorded inflation rates higher than the sector average of 10.9 percent”, she said, adding that the manufacture of furniture recorded the highest inflation rate of 32.2 percent while producer prices in the manufacture of electrical machinery and apparatus recorded the lowest inflation rate of -5.6 percent over the one year period.

She said between July 2012 and December 2012, the inflation rate in the petroleum subsector remained relatively stable, adding that it however dropped in January 2013 and subsequently rose in March 2013.

“The rate remained unchanged in April 2013 but thereafter increased steadily to record 19.3 percent in June 2013. In July this year the rate declined to 18.5 percent due to slight declines in the prices of marine gas oil and aviation fuel.

“The afore-mentioned figures for the month of July 2013 are provisional and are subject to revision when additional data become available.”