Ex-Factory Prices Drop To 3.7%

The year-on-year producer inflation for all industry was 3.7 percent in May 2017, while the monthly change rate recorded -0.4 percent.

Anthony Amuzu, Deputy Government Statistician, disclosed this to the media in Accra at the launch of the May 2017 producer price index (PPI) yesterday.

He said the figures of May 2017 were provisional and were subject to revision when additional data become available, saying “All other indicators are final.”

The mining and quarrying sub-sector recorded the highest year-on-year producer inflation rate of 14.3 percent, followed by the manufacturing sub-sector with 2.1 percent.

The utilities sub-sector recorded the lowest year-on-year producer inflation rate of 1.2 percent.

With respect to the monthly changes, he noted that the manufacturing sub-sector recorded the highest rate of 0.1 percent while that of the utilities sub-sector remained unchanged.

The mining and quarrying sub-sector recorded the lowest rate of -1.0 percent.

Manufacturing

During the month of 2017, nine out of 16 major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 2.1 percent.

Tanning and dressing of leather recorded the highest inflation 19.3 percent while manufacture of paper and paper products recorded the lowest producer price inflation rate of -5.4 percent.

Petroleum

The producer inflation rate in the petroleum sub-sector was 6.1 percent in May 2016.

In June 2016, the rate decreased to record -4.7 percent and then to 19.3 percent in July 2016.

The rate increased consistently to record -0.1 percent in December 2016.

It declined to -6.9 percent in January and then to 5.3 percent in March 2017.

It further dropped to -1.2 percent in April 2017 and then to -4.5 percent in May 2017.

Trends

In May 2016, the producer inflation rate for all industry was 11.0 percent.

The rate decreased to 7.6 percent in June 2016.

It increased to 10.4 percent in July, 2016 and then inched up to 11.1 percent in August 2016.

The rate witnessed a decline in September 2016 to record 9.7 percent, but increased marginally to 9.8 percent in October 2016.

It increased further to 11.9 percent in November 2016 but declined to 4.8 percent in December 2016 and then to 3.1 percent in January 2017.

In February 2017, the rate increased to 5.4 percent and then to 6.0 percent in March 2017, but declined consistently to record 3.7 percent in May 2017.

Source: Daily Guide