By Fred Sarpong
Year-on-year inflation in ex-factory prices of goods was 9.1% in February 2013, recording the lowest since January, 2012. This is measured by Producer Price Index (PPI).
The Producer Price Index (PPI) measures the average change over time in the prices received by domestic producers for the production of their goods and services.
This means that, ex-factory prices of goods for all industry increased on average by 9.1% in February 2013 relative to the price level recorded in February, last year.
The monthly change rate for February 2013 was also negative 0.3%, meaning that compared to January 2013, the PPI increased by 0.2%.
Kofi Agyeman Duah is the Acting Deputy Government Statistician in charge of Operations, he announced in Accra last week that Mining and Quarrying producer price inflation rate decreased by 10.7 percentage points over the January 2013 rate of 18.5%, to record 7.8%.
According to him the Manufacturing rate, which constitutes more than two-thirds of total industry, declined to 11.4%, from a rate of 12.8% in January 2013.
However, the Utilities sub-sector was 0.1% percentage point lower than that of January 2013 rate of 1.2%.
Duah said that the significant drop for all industry of 9.1% was as a result of the decline in the mining and quarrying sector.
Eight out of the 16 major groups in manufacturing sector recorded inflation rates above the sector average (11.4%) in February 2013. Manufacturing of textiles recorded the highest rate of 28.2% while manufacture of coke, refined petroleum products recorded a negative inflation rate of 1.5%.
During the last 13 months, the producer inflation in the petroleum sub-sector exhibited a downward trend. The highest inflation rate of 20.7% was recorded in March 2012 and the lowest of negative 1.5% in February, 2013.
The petroleum sector, which weight is 22.5% in the PPI basket, also affected the decline of the overall index of 9.1% with significant rate.