[ 2017-05-24 ]

The producer price inflation has fallen from 6.0 percent in March to 4.8 percent

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.

Source - Starrfmonline.com

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