Producer price inflation reaches 33.1 percent

The year-on-year producer inflation for all industry was 33.1 percent in June 2014, representing a 0.1 percentage point increase relative to 33.0 percent recorded in May 2014. The monthly inflation rate was 0.7 percent.

The utilities sub-sector recorded the highest year-on year producer price inflation of 56.9 percent followed by the mining and quarrying subsector with 37.3 percent. The manufacturing subsector recorded inflation rate of 27.1 percent.

Between June and August 2013, the rate declined continuously to record 4.7 percent in August 2013. In September 2013, however, the rate inched up to record 5.8 percent. Subsequently, the producer price inflation rate increased consistently over the last eight months to record 33.1 percent in June 2014.

“This rate is the highest since January 2010,” Dr Philomena Nyarko, Government Statistician noted. Manufacturing Sector Five out of the 16 major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 27.1 percent.

Manufacture of machinery and equipment recorded the highest inflation rate of 76.0 percent whilst producer prices in the manufacture of wood and wood products except furniture; manufacture of articles of straw and plaiting materials recorded the lowest producer price inflation rate of 2.3 percent over the one-year period.

The inflation rate in the petroleum sub-sector increased consistently to record 33.6 percent in September 2013. The rate fluctuated between October and December 2013, after which it increased to record 56.1 percent in February 2014.

The rate then declined to record 44.7 percent in March 2014 but started rising in April 2014 to record 48.2 percent May 2014.

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

The monthly changes in the producer price index indicated that manufacturing recorded a monthly inflation rate of 0.8 percent while mining and quarrying recorded 0.7 percent. The utilities sub-sector recorded the lowest monthly rate of 0.2 percent.