Skip to main content

Utility prices increases affect Producer Price Inflation

By Fred Yaw Sarpong

The increase of utility prices by Public Utilities and Regulatory Commission (PURC) last month affected the Producer Price Inflation (PPI) for September, 2013. Electricity and water tariff increase pushes PPI to 5.4% in September, 2013 from 4.7% recorded in August 2012.

According to Ghana Statistical Service (GSS) year-on-year producer inflation went up by 0.7 percentage points relative to the rate recorded in August 2013, which was 5.4%.

This means that, ex-factory prices of goods for all industry increased on average by 5.4% in September 2013 relative to the price level recorded in September 2012.
The month-on month change in producer prices between August 2013 and September 2013 was 1.9%. This also means that compared to August 2013, the PPI increased by 1.9% in September 2013.

The Chief Technical Director, Anthony Amusu announced this to the media at a news conference in Accra last week.

He stated that the producer inflation for mining and quarrying subsector increased by 2.8 percentage points over the August 2013 rate of negative 14.1%, to record negative 16.9%.

The manufacturing sector, which constitutes more than two-thirds of total industry, increased from 10.8% in August to 12.6% in September, 2013. The rate for the utilities sub-sector was the same as that recorded for August 2013, which was 0.2%.

Seven major groups in manufacturing recorded inflation rates higher than the sector average (12.6%) in September 2013. The items include manufacture of machinery and equipment, which recorded the highest inflation rate of 76.0%, while producer prices in the manufacture of electrical machinery and apparatus recorded the lowest inflation rate of -5.6% over the one year period.

Between September 2012 and December 2012, the inflation rate in the petroleum sub-sector remained relatively stable. However, it dropped in January 2013 and subsequently rose in March 2013.

The rate remained unchanged in April and May 2013. It thereafter increased steadily to record 19.3% in June 2103. In July 2013, the rate declined to 18.5% due to slight declines in the prices of marine gas oil and aviation fuel. However, the rate increased to 33.6% in September 2013 as a result of increases in the prices of petroleum products.

During the 13-month period (September 2012 to Septemebr 2013), the highest year-on-year inflation of 19.1% for all industry was recorded in October 2012 and the lowest in August 2013 (4.7%). Within the last quarter of 2012, the producer price inflation fluctuated until December 2012 when it started declining to record 9.1% in February 2013. InMarch2013, the rate increased slightly to record 10.6%, and subsequently it has declined consistently over the last five-month period to record the lowest rate of 4.7% in August 2013. In September however, the rate inched up to recorded 5.4%.


Post a Comment

Popular posts from this blog

Akuapem-Apirede to promote tourism

By: Fred Yaw Sarpong
The Chiefs and people of Akuapem-Apirede in the Okere Constituency of the Akuapem North Municipality have put in place strategic plans to promote tourist sites in the town.
Apiredehene, Nana Saforo Okoampah III told the Daily Express that their vision is to develop Apirede in a modern way.
“We want to have a modern society and environment. We are doing this on the basis of promoting tourism here,” he added.
According to the Apiredehene, it’s their plan to promote the historic sites and the geographical location of the community.
Apirede is one of the 17 towns that forms the Akuapem State and historically, it used to house the armours of the Akuapem State. The community is part of the Nifa division of Akuapem.
He stated that one of those things was called ‘Odosu’ (the war god for Okuapemhene). “The Chief Executioner in those days for Akuapem also came from Apirede and items that he used were also kept here,” he stated.
“These are a lot of things …

PIAC told to go to court to enforce recommendations

By: Fred Yaw Sarpong

The Public Interest and Accountability Committee (PIAC), the mandated body to monitor the use of Ghana’s oil revenues has been asked to go to court to seek strict compliance of the laws covering accountability of oil funds in the country.

According to Dr. Steve Manteaw, the Campaign Coordinator for ISODEC and a member of the PIAC , it’s time for PIAC as a body to consider going to court to compel institutions responsible for managing Ghana’s oil revenue to answers some questions concerning the expenditure of oil funds.

He pointed out that there are several recommendations made by the PIAC in its past reports on management of petroleum revenues, and a lot of these recommendations has received no positive response from the institutions concerned.

He disclosed this to the Daily Express at a three-day workshop on Interrogating the 2016 Semi Annual PIAC Report at Koforidua in the Eastern Region.

The workshop was organized by the Institute of Financ…

BoG shuts down two financial institutions

The Bank of Ghana has closed down two financial institutions in the country. This was after the central bank investigation revealed that the two companies were operating without approval.

The two companies were Agro Development Fund Services Limited (ADFSL) and Hebron Financial Investment Limited (HFIL).

The Daily Express gathered that the ADFSL was asked to stop operating after the central bank realized the institution had not been licensed to take deposit from the public.

A statement from BoG said the ADFSL continued to operate despite the orders from the Bank of Ghana. It however closed down ADFSL’s operation until further notice.

The Bank of Ghana said that the ADFSL is located at Asufufu, opposite the Sunyani Traditional Council in the Brong Ahafo region.

“The decision to close down ADFSL is in furtherance of section 20(2) (g) of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930). Bank of Ghana has investigated ADFSL thoroughly and has concluded that its a…