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Business News of Thursday, 27 March 2014

Source: GNA

Producer Price Inflation rate increases by 27.1 per cent

The year-on-year Producer Price Index increased by 27.1 per cent from February 2013 to February 2014, representing an increase of 3.0. Percentage points in producer inflation relative to the rate of 23.3 per cent recorded in January 2014.

Dr Philomena Nyarko, the Government Statistician, told journalists at a news conference in Accra on Wednesday that the month-on-month change in producer prices between January 2014 and February 2014 was 2.9 percent.

She said the utilities sub-sector recorded the highest year-on-year producer price inflation rate of 55.7 per cent followed by the manufacturing sub-sector with 27.2 per cent.

The mining and quarry sector recorded an inflation rate of 3.1 per cent, she added.

She said five out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 27.2 per cent.

Dr Nyarko said during the 12-month period (February 2013 to February 2014), the highest year-on-year inflation rate of 27.1 per cent for all industry was recorded in February 2014.

She said between April and August 2013, the rate declined continuously to record the lowest rate of 4.7 per cent in August 2013.

In September 2013, however, the rate inched up to record 5.8 per cent and subsequently, the producer price inflation rate increased consistently over the last five month to record 27.1 per cent in February 2014, this rate is the highest in four years, she added

She said from March 2013, the inflation rate in the petroleum sub-sector increased consistently to record 33.6 per cent in September 2013.

The rates fluctuated between October 2013 and December 2013, after which it increased consistently to record 56.1 per cent in February 201413, however, the rate inched up to record 5.8 per cent.

Dr Nyarko said Manufacturing of machinery and equipment recorded the highest inflation rate of 76.0 per cent whilst producer prices in the manufacture of electrical machinery and apparatus recorded the lowest inflation rate of -0.8 per cent over the one year period.