Producer Price Inflation for April records slight increment to 7.4% – GSS

Producer Price Inflation for April records slight increment to 7.4% – GSS

Professor Samuel Kobina Annim - Government Statistician, GSS

New figures released by the Ghana Statistical Service (GSS) indicates that the Producer Price Inflation (PPI) for April 2020 increased to 7.4 per cent.

This indicates a 0.6% point higher than the rate recorded in March 2020 which stood at 6.8%.

The Producer Price Index measures the average change over time in the prices received by domestic producers for the production of their goods and services.

In a statement issued by the Ghana Statistical Service, Government Statistician, Prof. Samuel K. Annim, explained that the increase in the PPI was mainly due to changes in the prices of gold.

“In the context of producer inflation, the increase of 0.6 on the year on year basis and 3.6 on a month on month basis is mainly attributed to changes in the prices of gold,” he said.

He further noted that the mining and quarrying sub-sector recorded the highest year on year producer price inflation rate of 38.0 per cent followed by utility sub-sector with 12.1 per cent, while the manufacturing sub-sector recorded the lowest year on year producer inflation of 0.5 per cent.

Concerning the monthly changes, mining and quarrying sub-sector recorded the highest inflation of 8.9% followed by the manufacturing sub-sector, 0.3% and the utility sub-sector recording the lowest rate of 0.1%.

However, the producer inflation rate in the petroleum sector has fallen short to -15.3 in April 2020.

“The producer inflation rate in the petroleum sub-sector was 17.2 per cent in April 2019. The rate declined continuously to record 1.2 per cent in June 2019. However, it increased to 3.1 per cent in August 2019 but declined again to -5.7 per cent in October 2019. Thereafter, the rate increased consistently to record 20.6 per cent in January 2020, but constantly declined to record -15.3 per cent in April 2020,” the statement added.