Producer inflation slows in April

The year-on-year producer inflation for all industry recorded a decline of 13.2 percent in April 2016, representing a 1.1 percentage point decrease in producer inflation relative to the 14.3 percent rate recorded in March 2016.

The utilities sub-sector recorded the highest year-on-year producer price inflation rate of 37.1 percent, followed by the manufacturing sub-sector with 12.0 percent. The mining and quarrying sub-sector recorded the lowest year-on-year inflation rate of -0.7 percent.

The monthly changes in the producer price index indicated that manufacturing recorded the highest monthly change rate of 2.8 percent, followed by the utilities sub-sector which remained unchanged.  The mining and quarrying sub-sector recorded the lowest inflation rate of -0.2 percent.

Mr. Baah Wadieh, Deputy Government Statistician, announcing at a media interaction in Accra, said the producer price inflation in the mining and quarrying sub-sector decreased by 7.6 percentage points over the March 2016 rate of 6.9 percent, to record -0.7 percent in April 2016.

He said the manufacturing sector, which constitutes more than two-thirds of total industry, increased by1.9 percentage points to record 12.0 percent. The utilities sub-sector recorded an inflation rate of 37.1 percent in April 2016 -- indicating a decrease of 6.3 percentage points over the March 2015 rate of 43.4 percent. The month-on-month change in producer price index between March and April 2016 was 1.7 percent 2016.

Mr. Wadieh explained that in March 2016 the rate declined to record 14.3 percent, and then to 13.2 percent in April 2016.

“The year-on-year inflation on ex-factory prices of goods and services was 13.2 percent for April 2016.  From April 2015, the rate fluctuated from 19.5 percent to record 23.1 percent in June 2015. 

The rate then declined consistently from 10.2 percent in July 2015 to 2.9 percent in October 2015. However, it increased to record 11.0 percent in December 2015. In January 2016, the rate increased to record 16.3 percent but declined in February 2016 to 14.5,” he said.

Manufacturing Sector

During the month of April 2016, six out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 12.0 percent. Manufacture of paper and paper products recorded the highest inflation rate of 42.0 percent, while publishing, printing and recorded media recorded the lowest producer price inflation rate of -5.6%.

Petroleum Price Index

The inflation rate in the petroleum sub-sector was -9.6 percent in April 2015.  The rate was the same in May 2016 but it increased to -0.01 percent in June 2015.

Subsequently, the rate declined consistently to record -34.5 percent in October, 2015. It however increased to -21.8 percent in December 2015, and rose further to record 3.3 percent in January 2016. 

It then declined to 0.5 percent in February 2016 but increased to record 2.9 percent in March 2016 as a result of base drift effect. The rate increased again to 7.9 percent in April 2016.