Producer inflation rises to 29.3% in March

BY: Emmanuel Bruce

The Producer Price Inflation (PPI) increased to 29.3 per cent in March 2022, from the 21.4 per cent recorded in February.

This represents an increase of 7.9 percentage points.

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

The Government Statistician, Professor Samuel Kobina Annim, who announced this yestersday, noted that the February PPI was driven by increases in the mining and quarrying, and the manufacturing sub-sectors.

The PPI in the mining and quarrying sub-sector increased by 19.8 percentage points over the February 2022 rate of 13.8 per cent to 33.6 per cent in March 2022.

That of the manufacturing sub-sector, which constitutes more than two-thirds of the total industry, increased by 7.2 percentage points to 36 per cent.

The utility sub-sector recorded the lowest PPI rate of 1.1 per cent for March 2022.

PPI trends

In March 2021, the producer price inflation rate for all industry was 13 per cent.

The rate decreased to a record 10.9 per cent in April 2021 but increased to 11.8 per cent in May 2021.

The rate decreased continuously to a record 8.1 per cent in August 2021.

Subsequently, the rate resumes an upward trend to increase continuously to a record 29.3 per cent in March 2022.

Manufacturing Sector

In March 2022, two out of the 16 major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 36 per cent.

Manufacture of carbonated drinks, and refined petroleum products recorded the highest inflation rate of 67.4 per cent, while the publishing, printing and reproduction of recorded media posted the least inflation rate of 2.6 per cent.

Petroleum Price Index

The producer inflation rate in the petroleum sub-sector was 31 per cent in March 2021.

The rate decreased to 28 per cent in April 2021 and subsequently fluctuated to 25.3 per cent in August 2021.

Thereafter, it increased continuously to 58.4 per cent in November 2021 but dropped to 35 per cent in January 2022.

In February 2022, the rate increased to 44.3 per cent and inched up to 67.4 per cent in March 2022.