Producer inflation dips to 26.9%

The Producer Price Inflation (PPI) dropped significantly from 33.0 per cent in October to 26.9 per cent in November, this year.

This rate indicates that between November 2023 and November 2024 (year-on-year), the PPI increased by 26.9 per cent, representing a 6.1 percentage point decrease in producer inflation relative to the rate. 

The month-on-month change in the PPI between October 2024 and November 2024 was -1.9 per cent, according to a release issued in Accra yesterday.

The Producer Price Index (PPI) measures the average change over time in the prices received by domestic producers to produce their goods and services. 

The PPI for Ghana reports the producer price indices with an index reference period of March 2020-February 2021. 

Service sector

The year-on-year service producer price inflation stood at 12.5 per cent in the period under review. 

The monthly change rate was 0.3 per cent.

The accommodation and food service sub-sector recorded the highest year-on-year producer price inflation rate of 32.5 per cent, followed by the transport and storage sub-sector with 31.7 per cent. 

The information and communication sub-sector recorded the lowest year-on-year producer inflation rate of 8.1 per cent.

The accommodation and food service sub-sector recorded the highest month-on-month inflation rate of 3.5 per cent, followed by the transport and storage sub-sector with 0.8 per cent. The Information and communication sub-sectors recorded the lowest month-on-month inflation rate (0.2 per cent) in November 2024.

The service producer price inflation in the Transport and Storage sub-sector decreased by 0.1 percentage points from 32.7 per cent in October 2024 to 31.7 per cent in November 2024. 

The Accommodation and Food Services sub-sector rate increased by 2.9 percentage points from 29.6 per cent in October 2024 to 32.5 per cent in November 2024. 

The Information and Communication sub-sector, on the other hand, recorded an inflation rate of 8.1 per cent for November 2024.

Industrial sector

The Industrial Producer Price inflation in the Mining and Quarrying sub-sector decreased in November 2024 to 41.9 per cent by 12.4 percentage points compared to the October 2024 rate of 54.3 per cent. 

The Manufacturing sub-sector decreased by 3.4 percentage points to 19.3 per cent in November 2024. 

The Electricity and Gas sub-sector recorded a 10.2 per cent inflation rate for November 2024, a decrease of 0.4 percentage points over the October rate of (10.6 per cent). 

The Water Supply, Sewerage, and Waste Management sub-sector recorded an inflation rate of 5.0 per cent.

The year-on-year producer inflation for the industry sector, less construction was 41.3 per cent in November 2024. The monthly change rate was -2.0 per cent.

The Mining and Quarrying sub-sector recorded the highest year-on-year producer price inflation rate of 41.9 per cent, followed by the Manufacturing sub-sector with 19.3 per cent. 

The Water Supply, Sewerage, and Waste Management sub-sector recorded the lowest year-on-year producer inflation rate of 5.0 per cent.

The Manufacturing sub-sector recorded the highest month-on-month inflation rate of 2.5 per cent, followed by the Electricity and Gas sub-sector with -0.01 per cent. 

The Mining and Quarrying sub-sector recorded the lowest inflation rate of -6.4 per cent for the month-on-month in November 2024.

Construction sector

Regarding the construction sector, the year-on-year producer inflation for construction was 31.1 per cent in November 2024 representing a monthly change rate of 0.1 per cent.

The civil engineering sub-sector recorded the highest year-on-year producer price inflation rate of 36.8 per cent, followed by the construction of buildings sub-sector with 19.6 per cent. 

The specialised construction sub-sector recorded the lowest year-on-year producer inflation rate of 18.3 per cent.

Again, the specialised construction activities recorded the highest month-on-month inflation rate of 1.2 per cent, followed by the construction of buildings sub-sectors recorded at 0.2 per cent.

The civil engineering sub-sector on the other hand recorded the lowest inflation rate of 0.1 per cent in the period under review.