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May Producer Price Index increased to 18.0%


By Fred SARPONG

 The Producer Price inflation, which measures the average change over time in the prices received by domestic producers for the production of their goods and services, recorded 18.0% at the end May, 2012. This was announced in Accra by the Acting Deputy Government Statistician in charge of Operation, Kofi Agyeman-Duah. According to a provisional figure, released by the Agyeman-Duah, Ghana’s Producer Price Index (PPI) for May 2012 increased from 15.8% in April 2012 to 18.0% for all industries in May this year. This represents an increase in producer inflation of 2.2 percentage points, relative to the rate in April 2012. The mining and quarrying sector was the major contributor to the overall industry Producer Price inflation 18.0%. Despite the sector recording highest year-on-year inflation of 22.5% in May 2012, it decreased by 1.8 percentage points over the April rate of 24.3%. However, mining and quarrying recorded the monthly rate of negative 0.1% in May 2012. Also, the manufacturing sector recorded the monthly change of 3.0%, while utilities 0.5% at the end May 2012. The overall month-on-month change in producer prices recorded a marginal increase of 2.2%, following a rate of 0.3% in April 2012. Manufacturing sector industry, which constitutes more than two-thirds of total industry, increased to 19.5%, from a rate of 16.2% in April 2012, representing rate of 3.3 percentage points increased. Meanwhile, the lowest year-on-year price change of 10.1% was recorded in the Utilities sector. During the 13-month period (May 2011 to May 2012), the all industry inflation rate decreased sharply from 23.2% in May 2011 to 12.1% in June 2011. Therefore, the rate increased consistently till it peaked at 19.6% in September, 2011 and then declined sharply again to 16.4% in October 2011. The producer inflation rate increased steadily over three months from the beginning of 2012, from 15.5% January 2012 to 16.2% in March 2012, but dropped marginally by 0.4 percentage points in April, 2012. In May 2012, the producer inflation rate increased to 18.0%. During the month of May 2012, six out of the 16 major groups in the manufacturing sector recorded inflation rate higher than the sector average of 19.5%. Manufacturing of machinery and equipment recorded the highest inflation rate of 38.1%, while tanning and dressing of leather, manufacture of luggage, handbags, saddler, harness and footwear recorded the lowest rate (-0.02%).

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