PPI for June increases to 7.7%
PPI for last month increased to 7.7%. This is up by 0.6 percent compared to the 7.1 percent recorded in May.
The PPI measures the average change over time in the prices received by domestic producers for the production of their goods and services.
Speaking to Citi Business News, Government Statistician Mr. Baah Wadieh explained that the increase was as a result of the depreciation of the cedi, as well as the increases in the inflation rate in the manufacturing sector.
“The rise in the producer inflation is going to be as a result in the rise of inflation rate in the manufacturing subsector”, he said.
He added, “The increase in the inflation rate in the manufacturing subsector was 10.2 percent for June 2018 as compared to 8.6 percent in May and this was due to the increases in the prices of petroleum products and depreciation of our local currency, these were the main factors that accounted for the rise in inflation that we are seeing”.
He explained that the increase in the prices of petroleum products also accounted for the increase in inflation in the manufacturing sector.
“The increase for the manufacturing was mainly due to the manufacturing of refined petroleum products which had the inflation in that industry increasing from 35.5 percent in May 2018 to 44.2 percent in June 2018”.
With regards to the monthly changes, Manufacturing recorded the highest inflation rate of 1.6 percent, followed by the Mining and Quarrying sub-sector which recorded 0.9 percent. The utility sub-sector recorded the lowest inflation rate of 0.1 percent.