Producer price inflation rate for September 2021 hits 8.8%

The producer price inflation rate for September 2021 was 8.8%, the Ghana Statistical Service (GSS) has said.

This rate indicates that between September 2020 and September 2021 (year-on-year), the PPI increased by 8.8%.

This rate represents a 0.7 percentage point increase in producer inflation relative to the rate recorded in August 2021 (8.1%). The month-on-month change in the producer price index between August 2021 and September 2021 was 0.9%.

The producer price inflation in the mining and quarrying sub-sector increased by 3.7 percentage points over the August 2021 rate of -3.2% to record 0.5% in September 2021.

The producer inflation for the manufacturing sub-sector, which constitutes more than two-thirds of the total industry, increased by 0.2 percentage points to record a 13.0%.

The utility sub-sector recorded a 0.1% inflation rate for September 2021, the GSS noted.

Trends

In September 2020, the producer price inflation rate for all industries was 9.7%. The rate declined consistently to a record 7.0% in December 2020.

In March 2021, the rate increased to 13.0% but declined to 10.9% in April 2021. In May 2021, the rate increased to 11.8% but decreased continuously to a record 8.1% in August 2021. The rate increased to 8.8% in September 2021.

Manufacturing sector

In September 2021, four out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 13.0%.

Manufacture of coke, refined petroleum products and nuclear fuel recorded the highest inflation rate of 27.4%, while the publishing, printing and reproduction of recorded media recorded the least inflation rate of 0.0%.

Petroleum price index

The producer inflation rate in the petroleum sub-sector was -0.3% in September 2020. The rate declined to record a -5.0% in November 2020.

Subsequently, the rate increased continuously to pick at 31.0% in March 2021 but declined to 23.9% in June 2021. The rate increased continuously to record a 27.4% in September 2021.

Highlights

The year-on-year producer inflation for all industries was 8.8% in September 2021; the monthly change rate was 0.9%.

The manufacturing sub-sector recorded the highest year-on-year producer price inflation rate of 13.0%, followed by the mining and quarrying sub-sector with 0.5%.

The utility sub-sector recorded the lowest year-on-year producer deflation rate of 0.2%.

The manufacturing and mining and quarrying sub-sectors recorded the highest monthly inflation rate of 1.1%, while the utility sub-sector recorded no change in inflation (0%).

READ ALSO: Producer Price Inflation Records Third Consecutive Decline Since May