Data from the Ghana Statistical Service has disclosed that the Producer Price Index (PPI), which measures the average change over time in the selling prices received by domestic producers for the production of their goods and services, decreased to 52.2 % in December 2022, from a record of 78.0% in November 2022.

The current rate gives an indication of the extent to which producer prices increased between December 2021 and December 2022 (year-on-year).

According to the data, between December 2021 and December 2022, the PPI increased by 52.2 percent, representing a 25.9 percentage points decrease in producer inflation relative to the rate recorded in November 2022 (78.1%). This gives an explanation to the fact that the month-on-month change in the PPI between November and December 2022 was -13.3%

Factoring out the construction sector, the PPI News Letter for December 2022, released by the Ghana Statistical Service (GSS), revealed that within the sectors, the producer price inflation in the industry decreased to 65.7 percent in December 2022 from 94.3 percent in November 2022.

Touching on the construction sector, there was an indication of a decrease in the rate from 26.6 percent in November 2022 to 22.1 percent in December 2022. In the Services sector, the rate decreased from 12.6 percent in November 2022 to 10.0 percent in December 2022

Sectors Segregation

Independently rating the various sectors, Mining and quarrying (73.4%) ,manufacturing (64.2%) and transport and storage (63.6%) recorded rates above the national average, while Information and communication activity recorded the lowest rate of 2.7 percent in December 2022

Accommodation and food service activities also experienced a fall in inflation rate from 52.7 in November to 32.5% in December. However, the sub-class is among those with the lowest inflation rates in December, 2022.

The inflation rate for the Water supply, sewerage, and waste management sub-class rose from 19.2% in November to 24.1% in December, 2022.

The Ghana Statistical Service reports producer price index with an index reference period of March 2020 – February 2021 = 100. The new data released by the GSS captured the annual (year-on-year) and monthly producer inflation rates for all sectors: Mining and Quarrying, Manufacturing, Electricity and Gas, Water Supply, Sewerage, and Waste Management, Construction, Transport and Storage, Food & Accommodation, and Information & Communication.

The GSS noted that the PPI figure for December 2022 is provisional and is subject to revision when additional data become available. All other indicators are however, final.