Producer Price Inflation Drops To 3.6% In June

This represents a 1.1 percent drop from the 3.7 percent recorded in May 2017.

The PPI measures the average change over time in the prices received by domestic producers for the production of their goods and services.

Explaining the reasons accounting for the drop in producer inflation, the Acting Government Statistician, Mr. Baah Wadieh attributed the drop to the significant drop in prices of gold for June 2016.

According to him, the development impacted heavily on the annual change in the producer price inflation for June 2017.

“The decline was mainly in the area of mining and quarrying. We are looking more at the base drift effect which also emanated from the fact that last year around this time [June], the prices for gold were high and because of that the index was high but no similar thing has happened this time round. So the sharp rise in prices has influenced the dip that we are seeing,” he remarked.

Meanwhile the Mining and Quarrying subsector recorded the highest inflation of 12 percent.

It was followed by the Manufacturing subsector comprising the manufacturing of furniture, assembling of vehicles among others recorded inflation of 2.4 percent.

In addition, the utilities subsector comprising electricity and water recorded the lowest inflation of 1.3 percent.

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(Via: CitiFM Online Ghana)