Producer price inflation eases marginally

Producer Price Inflation (PPI) dropped marginally in March 2010, recording 19.58 percent - a 2.55 percentage point lower than the February 2010 figure of -0.11 percent.

This marginal drop indicates that factory prices did not change significantly during the month under review.

Mr. Magnus Ebo Duncan, Director of Economics and Industry Statistics Division at the Ghana Statistical Service (GSS), who announced the figures at a press briefing in Accra, explained that the decline was due to the fall in demand for wood products in the manufacturing sector. Manufacture of wood products recorded a negative inflation rate of 3.01 percent.

“There was appreciable inflation in the manufacture of coke and refined petroleum products recording a figure of 55.91 percent, while manufacture of wood and cork recorded negative inflation rates,” Mr. Duncan stated.

The manufacturing sub-sector with 69.75 percent share of all industry, recorded inflation of 23.53 percent. Three of 16 groups recorded inflation rates higher than the average figure for the manufacturing sector.

They were manufacture of beverages, manufacture of coke, publishing and refined petroleum products and nuclear fuel.

Quarrying stone, sand and clay - as well as other quarrying and mining - recorded negative inflation rates; indicating less construction activities.

Utilities - which include production, transmission and distribution of electricity and collection, purification and distribution of water - recorded 0.20 percent inflation, meaning there was virtually no change in the price. The low price change was due to the regulated pricing of its output.

This industry recorded negative inflation for 2009, but it has so far recorded a positive inflation rate for this year.