Producer Price Inflation Falls

The Producer Price Inflation (PPI) fell to 11.1% in April 2021, from 13.0% recorded in March 2021. This reflected the decline in Consumer Price Inflation in April 2020, which fell by 2%.

According to data from the Ghana Statistical Service, the month-on-month change in producer price index between March 2021 and April 2021 was -0.1%.

The Mining and Quarrying sub sector recorded the biggest decline in inflation, whilst the Manufacturing sub sector inflation went up marginally.

The PPI in the Mining and Quarrying sub-sector decreased by 10.8 percentage points over the March 2021 rate of 22.7% to record 11.9% in April 2021.

The producer inflation for the Manufacturing subsector, which constitutes more than two-thirds of the total industry, decreased by 0.4 percentage points to record 13.7%.

The utility subsector recorded an inflation rate of 0.2% for April 2021, indicating a marginal decrease of 0.1 percentage point over the March rate of 0.3%.

In April 2021, five out of the 16 major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 13.7%. Manufacture of motor vehicles, trailers, and semitrailers recorded the highest inflation rate of 37.3%, while the Manufacture of electrical machinery and apparatus n.e.c. and Manufacture of machinery and equipment n.e.c. recorded the least inflation rate of 0%.

Petroleum Price Index

The PPI recorded 30.6% in April 2021, from 31.0% registered in March 2021

Trends

In April 2020, the producer price inflation rate for all industry was 7.4%.

The rate increased to record 9.5% in June 2020 but declined to 9.0% in August 2020. However, the rate increased to 9.7% in September 2020, but declined consistently to record 7.0% in December 2020.

In January 2021, the rate increased to 8.7% and then to 13.0% in March 2021, but declined to record 11.1% in April 2021.

Source: Joy Business