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GSS Releases Producer Price Index (PPI) For May 2014

Between May 2013 and May 2014, the country’s year-on-year Producer Price Inflation (PPI) increased by 33.1%, representing an increase in producer price inflation by 1.8 percentage points, relative to the 31.3% rate recorded in April 2014.

Deputy Government Statistician, Mr Baah Wadieh, who disclosed this at a news conference in Accra, yesterday, added that the month-on-month change in producer prices between April 2014 and May 2014 was 1.3 %.

Mr Baah Wadieh said in May 2014, the PPI in the mining and quarrying sub-sector increased by 10.0 percentage points over the April 2014 rate of 25.2%, to record 35 .2%.

He said the manufacturing sector, which constituted more than two-thirds of total industry, increased by 0.14 percentage points to record 27.5% while the rate for the utilities sub-sector rose marginally to record 56.8% in May 2014.

He said during the twelve-month period from May 2013 to May 2014, the highest year-on-year inflation rate of 31.1% for all industry was recorded in May 2014.

Furthermore, he said, between May and August 2013, the rate declined continuously to record the lowest rate of 4.7% in August 2013, inching up to record 5.8% in September 2013.

Mr Wadieh said the PPI had subsequently increased consistently over the last eight months to record 33.1% in May 2014, the highest in four years, since January 2010.

He said in the month of May 2014, four out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 27.5% while the manufacture of machinery and equipment recorded the highest inflation rate of 76.0%, with producer prices in the manufacture of wood and products of wood, except furniture, and the manufacture of articles of straw and plaiting materials recorded the lowest inflation rate of 1.9 % over the one-year period.

In the petroleum sub-sector, he said, from May 2013, the PPI increased consistently to record 33.6 % in September 2013, fluctuated between October and December 2013, after which it increased consistently to record 56.1% in February 2014, declined to record 44.7% in March 2014 and increased to 48.2% in May 2014.

According to Mr Wadieh, the utilities sub-sector recorded the highest year-on-year producer price inflation of 56.8 per cent, followed by mining and quarrying sub-sector which recorded a PPI of 35.2%, with the manufacturing sub-sector following at 27.5%.

He said the monthly changes in the PPI indicated that the mining and quarrying sub-sector recorded a monthly inflation rate of 3.4% while the manufacturing sub-sector recorded 1.1% with the utilities sector recording the lowest monthly rate of 0.2%.

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

The PPI for Ghana reports the producer price indices with reference to September 2006, the base period.
Source: ISD (G.D. Zaney)

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