The Producer Price Inflation (PPI) which measures the ex-factory prices of goods and services in the country was 11.8% in May 2021. This represents a 0.9 percentage point increase in producer inflation relative to the rate recorded in April 2021 (10.9%).
Meanwhile, the month-on-month change in Producer Price Index between April 2021 and May 2021 was 2.0 percent. This is higher than the -0.1 percent recorded between March 2021 and April 2021.
Moreover, the Ghana Statistical Service has provided a breakdown of the PPI for the three major subsectors of the industry: Mining and Quarrying, Manufacturing, and Utilities.
The producer price inflation in the Mining and Quarrying sub-sector increased by 0.8 percentage points over the April 2021 rate of 11.9 percent to record 12.7 percent in May 2021.
The producer inflation for the Manufacturing sub-sector, which constitutes more than two-thirds of the total industry, increased by 1.2 percentage points to record 14.6 percent.
According to Government Statistician, Prof. Samuel Kobina Annim, “the utility sub-sector recorded no inflation rate for May 2021. In May 2021, five out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 14.6 percent.”
Trends
In May 2021, the producer price inflation rate for all industry was 7.4%. The rate increased to record 9.5% in June 2020 but declined to 9.0% in August 2020. However, it increased to 9.7% in September 2020 but declined consistently to record 7.0% in December 2020. In January 2021, the rate increased to 8.7% and then to 10.9% in April 2021. But then again, it increased to record 11.8% in May 2021.
Manufacturing Sector
In May 2021, 5 out of the 16 major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 14.6%. Manufacture of motor vehicles, trailers, and semitrailers recorded the highest inflation rate of 33.6%. Conversely, the Manufacture of electrical machinery and apparatus and Manufacture of machinery and equipment recorded the least inflation rate of 0.0%.
Petroleum Price Index
Furthermore, the producer inflation rate in the petroleum subsector was -15.3% in April 2020. In June 2020, the rate increased to -4.5%, but declined to -5.4% in August 2020. Thereafter, it increased to -0.3% in September and declined to -5.0% in November 2020. Subsequently, the rate increased continuously to a record 31.0% in March 2021, but declined to 30.6% in April 2021.
Nevertheless, the GSS warned that the figures for May 2021 are provisional and are subject to revision. That means the GSS may revise the figures when additional data become available. But, all other indicators are final.
Producer Price Inflation rate in May 2021 is 11.8%. 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 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.
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