Producer price inflation drops to 4.8%
The producer price inflation has fallen from 6.0 percent in March to 4.8 percent. This means the cost of production for industries has seen a significant stability during the period.
The stability of the Cedi has been identified as the major cause for the fall. The year-on-year producer inflation for all industry was 4.8 percent in April 2017; the monthly change rate was -1.3 percent.
The Mining and Quarrying sub-sector recorded the highest year-on-year producer price inflation rate of 18.2 percent, followed by the Manufacturing subsector with 2.9 percent.
The Utilities sub-sector recorded the lowest year-on-year producer inflation rate of 1.2 percent.
With respect to the monthly changes, the Utilities sub-sector recorded the highest rate of -0.3 percent followed by the Manufacturing sub-sector with -1.0percent. The Mining and Quarrying sub-sector recorded the lowest rate of -3.4 percent.
In April 2016, the producer price inflation rate for all industry was 11.2 percent. The rate decreased to 11.0percent in May 2016 and decreased further to record7.6 percent in June 2016.
It increased to 10.4 percent in July, 2016 and then to 11.1 percent in August2016.
The rate declined in September 2016 to record 9.7 percent but increased marginally to 9.8 percent in October 2016.
It increased further to 11.9 percent in November 2016 but declined to 4.8 percent in December 2016 and then to 3.1 percent in January2017. In February 2017, the rate increased to 5.4 percent and then to 6.0 percent in March 2017 but declined to 4.8 percent in April 2017.
Manufacturing Sector during the month of April 2017, nine out of the 16 major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 2.9 percent. Tanning and dressing of leather recorded the highest inflation rate of 20.8percent while manufacturing of paper and paper products recorded the lowest producer price inflation rate of -5.3%
The producer inflation rate in the petroleum sub sector was 6.5 in April 2016. The rate declined slightly to 6.1 percent in May 2016.
In June 2016, the rate decreased to record -4.7 percent and then to-19.3 percent in July 2016.The rate increased consistently to record -0.1 percent in December2015. The rate declined to -6.9 percent in January2017 but increased to 0.4 percent in February 2017and then to 5.3 percent in March 2017. However, in April 2017, it declined to -1.2 percent.
The Producer Price Index (PPI) measures the average change over time in the prices received by domestic producers for the production of their goods and services.