The Producer Price Inflation rate for July 2018 was 8.2 per cent, according to figures from the Ghana Statistical Service.
This rate indicates that between July 2017 and July 2018 (year-on-year), the PPI increased by 8.2 per cent.
This rate represents a 0.5 percentage point increase in producer inflation relative to the rate recorded in June 2018 (7.7%). The month-on-month change in producer price index between June 2018 and July 2018 was 0.2 per cent.
The Producer Price Index (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 producer price indices with reference to September 2006, the base period.
The producer price inflation in the Mining and Quarrying sub-sector increased by 1.7 percentage points over the June 2018 rate of 5.8 per cent to record 7.5 per cent in July 2018. The producer inflation for Manufacturing which constitutes more than two-thirds of total industry increased by 0.2 percentage points to record 10.4 per cent.
The utilities sub-sector recorded inflation of -0.2 per cent in July 2018 indicating an increase of 0.2 percentage point relative to the rate recorded in June 2018 (-0.4%).
In July 2017, the producer price inflation rate for all industry was 2.0 per cent. The rate increased consistently to record 8.3 per cent in October 2017 but declined to 7.1 per cent in November 2017. In December 2017, it resumed a downward trend to record 3.7 per cent in March 2018. Since then, it increased consistently to record 8.2 per cent in July 2018.
During the month of July 2018, three out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 10.4 per cent. Manufacture of coke, refined petroleum products and nuclear fuel recorded the highest inflation rate of 42.2 per cent, while manufacturing of rubber and plastic products recorded the lowest producer price inflation rate of -1.7%
Petroleum Price Index
The producer inflation rate in the petroleum subsector was -2.7 per cent in July 2017. The rate then increased consistently to record 36.9 per cent in October 2017 but declined to 27.7 per cent in
November 2017. The rate increased to 36.4 per cent in December 2017 but declined consistently to record 15.9 per cent in March 2018. Subsequently, the rate consistently increased again to record 44.2 per cent in June 2018 but decreased to 42.2 per cent in July 2018.
The year-on-year producer inflation for all industry was 8.2 per cent in July 2018; the monthly change rate was 0.2 per cent.
The Manufacturing sub-sector recorded the highest year-on-year producer price inflation rate of 10.4 per cent, followed by the Mining and Quarrying subsector with 7.5 per cent. The utilities sub-sector recorded the lowest year-on-year producer inflation of -0.2 per cent.
With respect to the monthly changes, Mining and quarrying recorded the highest inflation rate of 0.5 percent. The Manufacturing and the Utilities subsectors recorded 0.2 percent.