Producer price drops to 7.7% in January

Mr. Baah Wadieh, Acting Government Statistician

The producer price inflation (PPI) for January has recorded a drop of 1.2 percentage points to 7.7 percent, from 8.9 recorded in December 2017.

The PPI measures the average change over time in the prices received by domestic producers for the production of goods and services.

Briefing the media in Accra, Acting Government Statistician, Baah Wadieh attributed this decrease to a decline in all sub-sectors.

“The decrease in the all industry inflation rate from 8.9 percent to 7.7 percent in January 2018 was as a result of decreases in the inflation rate in all the sub-sectors. That means there was a decrease in the manufacturing sub-sector inflation rate as well as the utilities and the mining and quarrying sub-sectors,” he said,

The inflation in the mining and quarrying sub-sector decreased by 0.8 percentage point over the December 2017 rate of 19.1 percent to record 18.3 percent in January 2018.

Manufacturing sub-sector, which constitutes more than two-thirds of the total industry decreased by 1.3 percentage points, to register 7.3 percent.

During the month, six out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 7.3 percent.

Manufacture of coke and refined petroleum products recorded the highest inflation rate of 29.0 percent while manufacturing of food and food products and beverages recorded the lowest producer price inflation rate of -3.1 percent.

The utilities sub-sector recorded an inflation rate of 0.2 percent in January 2018 indicating a decrease of 0.2 percentage point relative to the rate recorded in December 2017.

By Joshua W. Amlanu