Producer Price Inflation rate went up by 4.7 percentage points to record 38.0 percent in the sixth month of the year, up from 33.3 percent recorded in May 2022.
The current rate is an indication of the increase in ex-factory prices of goods and services between June 2021 and June 2022 (year-on-year).
The Producer Price Index (PPI) which measures the average change over time in the prices received by domestic producers for the production of their goods and services, rose from 1015.2 in May 2022 to 1062.2 in June 2022
This resulted in a month-on-month change of 4.6 percent in the producer price index between May 2022 and June 2022. This was higher than the rate of 3.6 percent recorded between April and May this year. It is however, lower when compared to the monthly producer inflation rates recorded between February 2022 and March 2022 (6.8%).
PPI for the various sub-sectors
The Ghana Statistical Service (GSS) provided information on inflation rates for all industry and its three major sub-sectors for the last twelve months. The major sub-sectors include Mining and Quarrying, Manufacturing and Utilities.
Data from the GSS showed that the producer price inflation in the Mining and Quarrying sub-sector increased by 1.6 percentage points to 25.5 percent in June 2022. In May 2022, the sub-sector recorded an inflation rate of 23.9 percent. This means inflation went up again after dropping last month. In March this year, the sub-sector recorded an inflation rate of 33.6 percent but rose to 35.2 percent as reported in April 2022.
Meanwhile, inflation in the utility sub-sector rose for the first time in two months to 1.2 percent after remaining unchanged at 1.1percent in May and April 2022.
Manufacturing Sector
The producer inflation for the Manufacturing sub-sector, which constitutes more than two-thirds of the total industry, increased by 7.2 percentage points to 51.8 percent in June 2022. The sub-sector recorded an inflation rate of 45.0 percent in May.
In June 2022, one out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 51.8 percent. Manufacture of coke, refined petroleum products and nuclear fuel recorded the highest inflation rate of 135.9 percent, while the Manufacture of machinery and equipment recorded the least inflation rate of 0.0 percent
Petroleum Price Index
The producer inflation rate in the petroleum subsector was 23.9 percent in June 2021 but increased to 25.2 percent in July 2021. Thereafter, it increased continuously to 58.4 percent in November 2021 before dropping significantly to 36.0 percent in January 2022. However, in February 2022, the rate increased to 44.3 percent and jumped by a very huge margin to 135.9 percent in June 2022.
Trends in PPI
In June 2021, the producer price inflation rate for all industry was 10.1 percent. The rate decreased to record 8.1 percent in August 2021 but increased to record 8.8 percent in September 2021. Subsequently, the rate resumed an upward trend and increase consistently to record 38.0 percent in June 2022.
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