Producer Price Inflation Drops to 5.5 % in February

The Producer Price Inflation (PPI)  dropped to 5.5 percent in February 2018.

This represents a 2.2 percent reduction compared to the 7.7 percent recorded in January 2018.

The PPI measures the average change over time in prices received by domestic producers for their goods and services.

The PPI for Ghana reports the producer price indices with reference to September 2006, which is the base year.

Speaking at a press conference in Accra, Acting Government Statistician, Baah Wadieh said the decrease has been influenced by the decrease in inflation of the Manufacturing and are Mining and Quarrying sub-sectors.

“The decrease in inflation is as a result in the decrease of the inflation rate in the Manufacturing sector and the Mining and Quarrying sub-sectors; so these drops in inflation for manufacturing and the drop in inflation for the Mining and Quarrying sub-sectors has accounted for the new rate”.

Mr Baah Wadieh explained that a decrease in the inflation of the manufacturing sector has the potential to trigger a decrease in the Producer Price Inflation.

“We know that manufacturing has about two thirds of the weight of the entire basket that we are looking at so any drop in manufacturing can greatly affect the we can term as the average for the entire industry”.

Meanwhile, the Mining and Quarrying sub-sector recorded the highest year on year producer inflation rate of 9.2,  percent followed by the manufacturing sub-sector with 6.0 percent.

The Utilities sub-sector recorded no year on year producer inflation.

With respect to the monthly changes, Mining and Quarrying recorded the  highest rate of 0.5 percent.

Both Utilities and Manufacturing recorded no change.

Source: Citibusinessnews