Producer Price Inflation drops to 10.1% in June

BY: Zadok Kwame Gyesi
Government Statistician, Professor Samuel Kobina Annim.
Government Statistician, Professor Samuel Kobina Annim.

The average change in the selling prices of goods and services as received by domestic producers and measured by the Producer Price Index (PPI), dropped from 11.8 per cent in the month of May to 10.1 per cent in June this year.

The rate indicates that between June 2020 and June 2021 (year-on-year), the PPI increased by 10.1 per cent.

It rate also represents a 1.7 percentage point decrease in producer inflation relative to the rate recorded in May 2021 (11.8%).

The month-on-month change in producer price index between May 2021 and June 2021 was 1.1 per cent according to a release issued in Accra and signed by the Government Statistician, Professor Samuel Kobina Annim.

The trends

In June 2020, the producer price inflation rate for all industry was 9.5 per cent. The rate decreased to 9.0 per cent in August 2020.

It increased to 9.7 per cent in September 2020 but declined consistently to record 7.0 per cent in December 2020.

In March 2021, the rate increased to 13.0 per cent.

However in April 2021, it declined to 10.9 per cent. In May 2021, the rate rose to 11.8 per cent but decreased to 10.1 per cent in June 2021.

In June 2021, it said the five out of the 16 major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 12.8 per cent.

“Manufacture of motor vehicles, trailers and semi-trailers recorded the highest inflation rate of 28.4 per cent, while the manufacture of electrical machinery and apparatus recorded the least inflation rate of 0.0 per cent,” the release said.

Petroleum Price Index

Meanwhile, the producer inflation rate in the petroleum sub-sector, the release said was -4.5 per cent in June 2020.

The rate fluctuated between July 2020 (-4.0%) and November 2020 (-5.0%). Subsequently, the rate increased continuously to pick at 31.0 per cent in March 2021 but declined to 23.9 per cent in June 2021.