Prime News Ghana

Producer Price Inflation records marginal increase for June

By Justice Kofi Bimpeh
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The Producer Price Inflation for June 2020 has recorded a marginal increase.

 The Producer Price Inflation increased by 0.3 % to record an 8.7 percentage point compared to 8.4% it recorded the same time in May.

This means the year on year PPI between June 2019 and June 2020 increased by 8.7%, month on month change in PPI between May and June was also at 1.8%

Government Statistician Prof Kwabena Anim said "The Producer Price Inflation for the month of June 2020 was 8.7%. This means that comparing 8.4 Producer Inflation for May 2020 and 8.7 for June 2020 there has been increased of 0.3 percentage point. On a month on month basis Producer Inflation for June 2020 was 1.8% this compares with 1.2% for May 2020. Year on year inflation from the producers perspective was 8.7%, this a 0.3 percentage point producer inflation higher than the rate recorded in May 2020."

The producer price inflation in the mining and quarrying sub-sector decreased by 7.3 percentage points over the May 2020 rate of 42.5 percent to record 35.2 percent in June 2020, the Ghana Statistical Service (GSS) has announced on Wednesday July 2.

That of the petroleum sub-sector was 1.2 percent in June 2019. Subsequently, the rate increased to record 3.1 percent in August 2019 but declined to -5.7 percent in October 2019.

Gold prices today fall as traders book profit at higher levels. Thereafter the rate increased consistently to record 20.6 percent in January 2020 but constantly declined to record -15.4 percent in May 2020. However, the rate increased again to record -5.4 percent in June 2020.

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.

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

During June 2020, nine out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 2.7 percent.