The Producer Price Inflation which measures the ex-factory prices of goods and services was 10.1 per cent on a year-on-year basis in June 2021. This represents a 1.7 percentage point decrease in producer inflation relative to the rate recorded in May 2021 (11.8%).
Consequently, the month-on-month change in producer price index between May 2021 and June 2021 was 1.1 percent. This is less than the 2.0 per cent recorded between April 2021 and May 2021.
The producer price inflation in the Mining and Quarrying sub-sector decreased by 3.2 percentage points over the May 2021 rate of 12.7 percent to record 9.5 percent in June 2021.
Furthermore, 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. Meanwhile, the utility sub-sector recorded no inflation rate for June 2021 as was the case in May 2021.
Trends in overall PPI
The Producer Inflation for all industry was 9.5 per cent in June 2020. However, it declined further to 9.3 per cent in July 2020 but rose to 9.7 per cent in September 2020.
Furthermore, the producer inflation rate declined to its lowest point in December 2020 by 7 percent. Then to the highest rate of 13 percent in March 2021 before declining to the current rate of 10.1 percent.
Trends in the Manufacturing Sector
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. Since March 2021, the inflation rate for manufacturing has been increasing above 10 percent.
Furthermore, the manufacture of motor vehicles, trailers, and semi-trailers recorded the highest inflation rate of 28.4 percent, while the manufacture of electrical machinery and apparatus recorded the least inflation rate (0%).
Trends in Petroleum Sector
The Producer Price Inflation rate for petroleum sub-sector was -4.5 per cent in June 2020. In August 2020, the inflation rate recorded was at its lowest throughout the 12-month period (-5.4%).
Albeit, the inflation rate within the petroleum sub-sector increased to 4.4 per cent in January 2021. Since February, 2021, the rates recorded have been in the double digits with the current rate reaching 23.9 per cent.
Trends in Mining and Quarrying
Over the 12-month period (June 2020-July 2021), the inflation rate for the mining and quarrying sector has not been stable. The PPI for June 2020 was 1.8 per cent which further increased to 7.2 per cent in July 2020 and assumed a negative rate in September 2020.
Although the inflation rates since then have been quite low, it increased to 4.2 per cent in May 2021, following a fall of -0.7 per cent in April 2021.
The Producer Price Inflation for Ghana indicates the producer price indices with reference to September 2006, the base period. It shows the year-on-year and monthly producer inflation rates for all industries and three major sub sectors namely; Mining and Quarrying, Manufacturing, and Utilities.
READ ALSO: IMF cautions Ghana against monetary financing of deficit
