The Producer Price Index measures the average change overtime in prices received by domestic producers for the production of their goods and services.The month-on-month change in producer price between July and August 2015 was minus 3.4 percent.
The utilities sub sectors recorded the highest inflation year – on – year producer price inflation rate of 8.4 percent in August followed by the manufacturing subsector which recorded 4.1 percent while the mining and quarry sub sector recorded an inflation rate of 1.7 percent.
Speaking to Citi Business News Government Statistician at the Ghana Statistical Service Dr. Philomena Nyarko attributed the sharp decline to the drop in the prices of petroleum products in July 2015 predicting that September could see further decline due to the appreciation of the cedi.
“You know there were significant reductions in the prices of petroleum products in July 2015 about 24 percent. The manufacturing of refined petroleum products take up about 23 percent of the weight of the basket, so when there is a significant change it affects the basket and then there is also the manufacturing of basic metals which also decreased from 33 percent in July to 9 percent in August 2015.”