The Producer Price Inflation (PPI) saw an increase of 9.9 percent for November 2019.
This represents a 1 percentage point increase from 8.9 percent in October 2019.
The PPI measures the average change in the prices received by domestic producers for the production of their goods and services.
Novembers’ Producer Price inflation which is the highest since August this year, was driven by the mining and quarrying sub-sectors as well the utilities sub-sectors of Industry.
The Data released by the Ghana Statistical Service shows that the mining and quarrying sub-sectors recorded the highest inflation of 33.9 percent, followed by the utilities sub-sector with 12.7 percent for November 2019.
Samuel Kobina Annim, who is the Government Statistician, further highlighted the role that the mining and quarrying sub-sectors played in November’s inflation rate.
“With the exception of mining and quarrying that shows an outlier with a peak from April 2019 to September 2019, thereafter flattening to November 2019, all the other sectors do not show that significant change over the period from November 2018 to November 2019.”
Trends
In November 2018, the producer price inflation rate for all industry was 6.5 percent.
The rate declined to 3.4 percent in January 2019. Thereafter, it resumed an upward trend to record 7.1 percent in April 2019, but declined to 6.7 percent in May 2019. Since then, it increased consistently to record 10.2 percent in August 2019, but declined to 8.9 percent in October, 2019. The rate increased to 9.9 percent in November 2019.
Manufacturing Sector
During the month of November 2019, eight out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 4.5 percent.
Manufacture of machinery and equipment recorded the highest inflation rate of 24.7 percent, while Manufacturing of coke, refined petroleum products and nuclear fuel recorded the least inflation rate of -1.7 percent.
Highlights
The year-on-year producer inflation for all industry was 9.9 percent in November 2019; the monthly change rate was 0.3 percent. The Mining and Quarrying sub-sector recorded the highest year-on year producer price inflation rate of 33.9 percent, followed by Utilities sub-sector with 12.7 percent.
The Manufacturing sub-sector recorded the lowest year-on-year producer inflation of 4.5 percent.
With respect to the monthly changes, manufacturing recorded the highest inflation rate of 0.5 percent, followed by utilities sub-sector with 0.1 percent. The mining and quarrying sub-sectors recorded no change.
Citibusinessnews