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Business News of Friday, 24 July 2020

Source: goldstreetbusiness.com

Manufacturing raises producer inflation to 8.7% in June

Producer inflation for June 2020 has recorded an increase to 8.7 percent, driven by the manufacturing sector, data from the Ghana Statistical Service (GSS) has shown.

This rate represents a 0.3 percentage point increase in producer inflation relative to the rate recorded in May 2020 of 8.4 percent.

During the month, the manufacturing sub-sector, which constitutes more than two-thirds of the total industry, also contributed marginally to the increase in the all industry rates.

The producer inflation for Manufacturing which constitutes more than two-thirds of the total industry increased by 1.6 percentage points to record 2.7 percent. Manufacture of food products and beverages recorded the highest inflation rate of 8.5 percent, while the Manufacture of coke, refined petroleum products and nuclear fuel recorded the least inflation rate of -4.5 percent.

The producer price inflation rate in the Mining and Quarrying sub-sector fell by 7.3 percentage points from the May 2020 rate of 42.5 percent to record 35.2 percent in June 2020.

The utility sub-sector recorded an inflation rate of 12.1 percent for June 2020 indicating no change in the producer inflation rate recorded in May 2020.

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.

Trends

In June 2019, the producer price inflation rate for all industry was 7.1 percent. Subsequently, the rate increased consistently to record 10.2 percent in August 2019 but thereafter declined to 8.9 percent in October 2019.

The rate then increased again continuously to record 14.5 percent in January 2020 but declined thereafter to record 6.8 percent in March 2020. Since then, the rate has increased continuously to record 8.7 percent in June 2020.

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