Producer Price inflation hits 38%

The Producer Price Inflation (PPI) shot up from 4.7% to 38.0% in June 2022, figures from the Ghana Statistical Service have revealed.

This is consistent with the Consumer Price Index (CPI).

However, the month-on-month change in the producer price index between May 2022 and June 2022 was 4.6%

According to the figures, 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%.

The PPI in the Mining and Quarrying sub-sector however increased by 1.6 percentage points over the May 2022 rate of 23.9% to 25.5% in June 2022.

Also, the utility sub-sector recorded a 1.2% inflation rate for June 2022.

Again, the manufacturing sub-sector recorded the highest monthly inflation rate of 6.8%, followed by the mining and quarrying sub-sector with 0.1%. The utility sub-sector recorded no inflation in June 2022.

For the manufacturing sub-sector, one out of the 16 major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 51.8%.

Read Also: Parliament approves $750m loan agreement

Manufacture of coke, refined petroleum products, and nuclear fuel recorded the highest inflation rate of 135.9%, while the Manufacture of machinery and equipment n.e.c. recorded the least inflation rate of 0.0%.

Trends

In June 2021, the producer price inflation rate for all industry was 10.1%.

The rate decreased to a record 8.1% in August 2021 but increased to 8.8% in September 2021. Subsequently, the rate resumed an upward trend and increase consistently to a record 38.0% in June 2022.