Producer Price Inflation For August Drops To 7%

The Producer Price Inflation rate for August 2018 dropped to 7.0 % from 8.2% recorded in July.

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The Producer Price Inflation rate for August 2018 was 7.0%. This rate indicates that, between August 2017 and August 2018 (year-on-year), the PPI increased by 7.0 %. This rate represents a 1.2 percentage point decrease in producer inflation relative to the rate recorded in July 2018 (8.2 %). The month-on-month change in producer price index between July 2018 and August 2018 was -0.1 %.

The producer price inflation in the Mining and Quarrying sub-sector decreased by 5.6 percentage points over the July 2018 rate of 7.5 % to record 1.9 % in August 2018. The producer inflation for Manufacturing which constitutes more than two-thirds of total industry decreased by 0.4 percentage points to record 10.0 %. The utility sub-sector recorded inflation of -0.2 % in August 2018 indicating no change in inflation.

Mining sector

In August 2017, the producer price inflation rate for all industry was 6.6 %. The rate increased consistently to record 8.3 % in October 2017 but declined to 7.1 % in November 2017. In December 2017, the rate increased to 8.7 % but decreased consistently to record 3.7 % in March 2018. It increased to 6.4 % in April 2018 and then to 7.1 % in May 2018. The rate increased again to record 7.7 % in June 2018. In July 2018, the rate increased further to record 8.2 % but declined to 7.0 % in August 2018.

Manufacturing Sector

During the month of August 2018, three out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 10.0 %. Manufacture of coke, refined petroleum products and nuclear fuel recorded the highest inflation rate of 41.6 %, while Manufacture of other non-metallic mineral products recorded the lowest producer price inflation rate of   -0.5%.

Petroleum Price Index

The producer inflation rate in the petroleum sub-sector was 23.2 % in August 2017. Subsequently, it increased consistently to record 36.9 % in October 2017 but declined to 27.7 % in November 2017. The rate increased to 36.4 % in December 2017 but declined consistently to record 15.9 % in March 2018. Subsequently, the rate consistently increased to record 44.2 % in June 2018. The rate decreased to 42.2 % in July 2018 and then to 41.6 % in August 2018.

Highlights

The year-on-year producer inflation for all industry was 7.0 % in August 2018; the monthly change rate was -0.1 %.

The Manufacturing sub-sector recorded the highest year-on-year producer price inflation rate of 10.0 %, followed by the Mining and Quarrying sub-sector with 1.9 %. The utility sub-sector recorded the lowest year-on-year producer inflation of -0.2 %.

With respect to the monthly changes, Manufacturing recorded the highest inflation rate of 0.2 % followed by the utility sub-sector with 0.1 %. The Mining and quarrying sub-sector recorded -1.4 %.

© 2018 CCI FRANCE GHANA