Producer Price Inflation (PPI) increased to 23.1 percent in June from the 19.0 percent recorded in May 2015.
[contextly_sidebar id=”OGlmewgg4zPEOEdtpfmpMnBI6wJg50Kw”] The Producer Price Index measures the average change overtime in prices received by domestic producers for the production of their goods and services.
The month-on-month change in producer price between May and June 2015 was 4.4 percent.
The mining and quarry sub sectors recorded 30.0 percent in June from 25.4% recorded in May 2015 being the highest year on year inflation.
They were followed by the manufacturing subsector which recorded 21.9% while the utilities sub sector recorded an inflation rate of 20.8percent.
Speaking to Citi Business News Government Statistician Dr. Philomena Nyarko attributed the high increase to the cedi’s slide but predicted the July producer price index will drop due to the appreciation of the cedi.
“You know we are reporting for June so the appreciation of the cedi will be reported for July but for the June figures we are seeing significant rise in the inflation figures due to mining and quarrying subsectors and the manufacturing subsector because their raw materials are imported and is a question of the depreciation of the cedi also because we talking about the price of gold which are quoted in dollars and when they are converted into cedis they affect the price levels.”
With regards to the manufacturing levels there were increases in the price of cement, petroleum and chemicals and chemical products as well as textile prices and these entire put together contributed hugely to the high inflations figures.
Meanwhile the Ghana Statistical Service (GSS) has revised the May producer price index to 18.8 percent from the 19 percent recorded.
According to the GSS the current 18.8 percent is as a result of additional data the service received.
By: Norvan Acquah – Hayford/citifmonline.com/Ghana