The Producer Price Inflation rate for June 2021 dropped to 10.1 percent representing a 1.7 percentage point decrease in producer inflation relative to the rate recorded in May 2021 (11.8%).
This rate only indicated that between June 2020 and June 2021 (year-on-year), the PPI increased by 10.1 percent.
The manufacturing sub-sector recorded the highest year-on-year producer price inflation rate of 12.8 percent, followed by the Mining and Quarrying subsector with 9.5 percent.
The Utility sub-sector recorded the lowest year-on-year producer inflation rate of 0.1 percent whereas, the manufacturing sub-sector recorded the highest monthly inflation rate of 1.8 percent, followed by the utility sub-sector with no change in inflation (0%), with the mining and quarrying the sub-sector (- 1.1%).
The Government Statistician Professor Samuel Kobina Annim at a news conference on Wednesday 21, July 2021 said, “the producer price inflation in the Mining and Quarrying sub-sector decreased by 3.2 percentage points over May 2021 rate of 12.7 percent to record 9.5 percent in June 2021.
The producer inflation for the Manufacturing sub-sector, which constitutes more than two-thirds of the total industry, decreased by 1.8 percentage points to record 12.8 percent. The utility sub-sector recorded no inflation rate for June 2021”.
In June 2021, five out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 12.8 percent.
Manufacture of motor vehicles, trailers, and semitrailers recorded the highest inflation rate of 28.4 percent, while the Manufacture of electrical machinery and apparatus n.e.c. recorded the least inflation rate of 0.0 percent.
The rate in the petroleum sub-sector was -4.5 percent in June 2020. The rate fluctuated between July 2020 (-4.0%) and November 2020 (-5.0%). Subsequently, the rate increased continuously to pick at 31.0 percent in March 2021 but declined to 23.9 percent in June 2021.
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. This release shows the annual (year-on-year) and monthly producer inflation rates for all industry and three major sub-sectors of industry (Mining and Quarrying, Manufacturing and Utilities) for the last twelve months.
The figures for June 2021 are provisional and are subject to revision when additional data become available. All other indicators are final.
Story by Edzorna Francis Mensah