Producer price inflation rate for August 2021 declines to 8.1%

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The Producer price inflation (PPI) rate for August 2021 has decreased to 8.1%, the Ghana Statistical Service (GSS) has said.

This rate represents a 0.3 percentage point decrease in producer inflation relative to the rate recorded in July 2021 (8.4%).

The month-on-month change in producer price index between July 2021 and August 2021 was 0.5%.

The producer price inflation in the mining and quarrying sub-sector decreased by 5.4 percentage points over the July 2021 rate of 2.2% to record -3.2% in August 2021.

The producer inflation for the manufacturing sub-sector, which constitutes more than two-thirds of the total industry, increased by 0.8 percentage points to record 12.8%.

The utility sub-sector recorded 0.2% inflation rate for August 2021.

Trends
In August 2020, the producer price inflation rate for all industry was 9.0%. The rate increased to 9.7% in September 2020 but declined consistently to record 7.0% in December 2020.

In March 2021, the rate increased to 13.0%, but in April 2021, it declined to 10.9%.

In May 2021, the rate rose to 11.8% but decreased continuously to 8.1% in August 2021.

Manufacturing sector
In August 2021, four out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 12.8%.

Manufacture of coke, refined petroleum products and nuclear fuel recorded the highest inflation rate of 25.3%, while the manufacture of textiles recorded the least inflation rate of 0.3%.

Petroleum price index
The producer inflation rate in the petroleum subsector was -5.4% in August 2020. The rate fluctuated between September 2020 (-0.3%) and December 2020 (-4.0%).

Subsequently, the rate increased continuously to pick at 31.0% in March 2021 but declined to 23.9% in June 2021. The rate increased to record 25.3 percent in August 2021.

Highlights
The year-on-year producer inflation for all industry was 8.1% in August 2021; the monthly change rate was 0.5%.

The manufacturing sub-sector recorded the highest year-on-year producer price inflation rate of 12.8%, followed by the utility sub-sector with 0.2%.

The Mining and Quarrying sub-sector recorded the lowest year-on-year producer deflation rate of -3.2%. The manufacturing sub-sector recorded the highest monthly inflation rate of 0.9%, while the utility sub-sector recorded no change in inflation (0%).

The mining and quarrying sub-sectors recorded the least monthly deflation rate of -0.4%.

Source: Daily Mail GH