June producer price inflation inches up to 25.9%
PRODUCER Price Index (PPI), which measures average change over time in the prices received by domestic producers to produce their goods and services, has inched upwards to 25.9 per cent in June from the May figure of 23.4 per cent.
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On a month-on- month basis, the change in the PPI between May 2024 and June 2024 was 2.7 per cent.
This rate also indicates that between June 2023 and June 2024 (year-on-year), the PPI increased by 25.9 per cent, representing a 2.5 percentage point increase in producer inflation relative to the rate recorded in May 2024, according to latest figures released by the Ghana Statistical Service (GSS) in Accra yesterday.
Although unlikely, the increased PPI can signal an increase in the Consumer Price Inflation (CPI) for the month of July, according to analysts.
Inflation for the month of June eased to 22.8 from the May figure of 23.1 per cent, a development which brought smiles on the faces of many as they expected the trend to continue to positively impact the prices of goods and services in the country.
The GSS report said producer price inflation in the industry sector excluding the construction sector increased to 29.4 per cent in June 2024 from 28.5 per cent in May 2024.
Service Producer Price Inflation
The Service Producer Price Inflation (SPPI) rate for June 2024 is 12.2 per cent. This rate indicates that between June 2023 and June 2024 (year-on-year), S-PPI, which measures the average change over time in the prices received by domestic producers within the service sub-sectors to produce their goods and services, increased by 12.2 per cent.
This rate represents a 0.8 percentage points increase in SPPI relative to the rate recorded in May 2024 (11.4%). The month-on-month change in the S-PPI between May 2024 and June 2024 is 0.7 per cent.
The service producer price inflation in the transport and storage sub-sector increased by 3.4 percentage points over the May 2024 rate of 20.7 per cent to 24.1 per cent in June 2024.
The accommodation and food services sub-sector rate increased by 1.9 percentage points to 28.0 per cent in June 2024.
The Information and Communication sub-sector recorded an inflation rate of 9.2 per cent for June 2024.
Industrial Producer Price Index
The Industrial Producer Price Index (I-PPI) rate for June 2024 stood at 33.3 per cent. This rate indicates that between June 2023 and June 2024 (year-on-year), I-PPI, which measures the average change over time in the prices received by domestic producers within the industry sector to produce their goods and services inflation, increased by 33.3 per cent.
This rate represents a 4.1 percentage points increase in industrial producer inflation relative to the rate recorded in May 2024 (29.2%).
The month-on-month change in the I-PPI between May 2024 and June 2024 was 4.0 per cent.
The I-PPI in the Mining and Quarrying sub-sector increased by 4.8 percentage points over the May 2024 rate of 40.7 per cent to 45.5 per cent in June 2024.
The Manufacturing sub-sector increased by 3.4 percentage points to 13.2 per cent in June 2024. Electricity and gas recorded a 11.4 per cent inflation rate for June 2024, a decrease of 14.0 percentage points over the May rate of (25.4%).
The Water Supply, Sewerage and Waste Management sub-sector recorded an inflation rate of 2.6 per cent.
Construction Producer Price inflation
The Construction Producer Price inflation (C-PPI) for June 2024 recorded a rate of 29.4 per cent. This rate indicates that between June 2023 and June 2024 (year-on-year), C-PPI, which measures the average change over time in the prices received by domestic producers within the Construction sub-sector to produce their goods and services, increased by 29.4 per cent.
This rate represents a 0.9 percentage point increase in producer inflation relative to the rate recorded in May 2024 (28.5%).
The month-on-month change in the C-PPI between May 2024 and June 2024 was 0.9 per cent
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The inflation in the construction of buildings sub-sector increased by 1.6 percentage points over the May 2024 rate of 14.0 per cent to 15.6 per cent in June 2024.
The rate for the civil engineering sub-sector increased by 0.6 percentage points to 36.7 per cent in June 2024. The specialised construction activities sub-sector recorded an inflation of 5.8 per cent in June 2024 compared with May 2024 rate of 5.5 per cent.
Insights
The PPI for Ghana reports the producer price indices with an index reference period of March 2020 – February 2021 = 100.
This release shows the annual (year-on-year) and monthly producer inflation rates for all sectors: Mining and Quarrying; Manufacturing; Electricity and Gas; Water Supply, Sewerage, and Waste Management; Construction; Transport and Storage; Food and Accommodation; Information and Communication.
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It said PPI figure for June 2024 was provisional and was subject to revision when additional data becomes available.
All other indicators are final, the GSS report said.