Producer price inflation rate for January 2016 stands at 16.3 per cent

The Producer Price Inflation (PPI) rate for the month of January 2016 was 16.3 per cent, representing a 5.3 percentage point increase in producer inflation, relative to the rate of 11.0 per cent recorded in December 2015.


The rate indicates that between January 2015 and January 2016 (year-on-year), PPI increased by 16.3 per cent for all industry while the monthly (month-on-month) change rate between December 2015 and January 2016 was 3.3 per cent.

Government Statistician, Dr. Philomena Nyarko, who made these known at a news conference in Accra, last Tuesday said the producer price inflation in the Mining and Quarrying sub-sector, decreased by 1.9 percentage points over the December 2015 rate of 4.8 per cent, to record 2.9 per cent in January 2016.

Dr. Nyarko said the Manufacturing sector, which constituted more than two-thirds of total industry, increased by 7.7 percentage points to record 11.4 per cent, while the Utilities sub-sector recorded an inflation rate of 56.6 per cent in January 2016, and remained unchanged over the December 2015 rate.

The Government Statistician said during the month under review, ten out of the sixteen major groups in the Manufacturing sub-sector recorded inflation rates higher than the sector average of 11.4 per cent while the manufacture of chemicals and chemical products recorded the highest inflation rate of 39.4 per cent, with the manufacture of basic metals recording the lowest producer price inflation rate of -2.3 per cent.

In the petroleum sub-sector, she said the inflation rate was 4.3 per cent in January 2015 which, thereafter, declined to record a rate of -9.6 per cent in May 2015 due to the combined effect of base drift and a decrease in ex-refinery prices of petroleum products

She said in August 2015, the rate further declined to -28.0 per cent and then to -34.5 per cent in October 2015 as a result of decreases in the rate of petroleum products, increasing to -21.8 per cent in December 2015 and rising sharply in January 2016 to record 3.3 per cent as a result of increases in the price of petroleum products

Dr. Nyarko said the Utilities sub-sector recorded the highest year-on-year PPI rate of 56.6 per cent, followed by the Manufacturing sub-sector with 11.4 per cent, while the Mining and Quarrying sub-sector recorded the lowest year-on-year inflation rate of 2.9 per cent.

She explained that the monthly change in the PPI indicated that the Manufacturing sub-sector recorded the highest inflation rate of 4.3 per cent, followed by the Mining and Quarrying sub-sector with -2.3 per cent while the index for the Utilities sub-sector remained unchanged.

PPI measures the average change over time in the prices received by domestic producers for the production of their goods and services. The PPI for Ghana reports the price indices with reference to September 2006, the base period.

From January 2015, PPI rate consistently declined to record 19.2 per cent in March 2015, subsequently fluctuated to record 23.1 per cent in June 2015 and declined consistently from 10.2 per cent in July 2015 to 2.9 per cent in October 2015.

PPI then increased consistently to record 11.0 per cent in December 2015 and increased further to record 16.3 in January 2016.

SOURCE: ISD

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