Producer Price Inflation hits 17.4% in January 2024

The Ghana Statistical Service has released its latest figures on the Producer Price Index (PPI), revealing an increase in the Producer Price Inflation (PPI) rate for January 2024.

According to the report, the PPI rate rose to 17.4 per cent, signifying a slight uptick compared to the previous year.

The Producer Price Index (PPI) serves as a crucial metric, measuring the average change over time in the prices received by domestic producers for their goods and services. The latest PPI report covers various sectors, including Mining and Quarrying, Manufacturing, Electricity and Gas, Water Supply, Sewerage, and Waste Management, Construction, Transport and Storage, Food & Accommodation, and Information & Communication.

The PPI figures for January 2024 are provisional, subject to revision as additional data becomes available. However, the initial data indicates a substantial year-on-year increase, with the PPI climbing by 17.4 per cent between January 2023 and January 2024. This marks a noteworthy 0.8 percentage point rise in producer inflation compared to December 2023, which stood at 16.6 per cent.

In a detailed breakdown of sectoral PPI, the report highlights significant fluctuations across industries. While the industry excluding construction saw an uptick in producer price inflation to 17.2 percent in January 2024 from 16.2 percent in December 2023, the construction sector witnessed a decline to 40.2 percent from 46.0 percent during the same period. Similarly, the Services sector experienced a decrease in the inflation rate from 17.6 per cent in December 2023 to 16.9 per cent in January 2024.

Notably, specific sectors such as Electricity and Gas, Construction, Mining and Quarrying, and Accommodation and Food Services recorded inflation rates above the national average. Conversely, Manufacturing activity recorded the lowest rate at 9.7 per cent in January 2024.

These fluctuations underscore the dynamic nature of the economy, with various sectors experiencing divergent trends in producer price inflation. As Ghana navigates through economic challenges, monitoring and understanding these fluctuations in the PPI remain crucial for policymakers and stakeholders to make informed decisions.