Producer Price Inflation rate for December 2021 declines to 12.8%

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The producer price inflation (PPI) rate for December 2021 declined to 12.8% as compared to 13.3% in November 2021, the Ghana Statistical Service (GSS) has announced.

This rate indicates that between December 2020 and December 2021 (year-on-year), the PPI increased by 12.8%.

According to the GSS, “this rate represents a 0.8 percentage point decrease in producer inflation relative to the rate recorded in November 2021 (13.6%).

The month-on-month change in PPI between November 2021 and December 2021 was -0.2%.”

Manufacturing sector

In December 2021, two out of the sixteen major groups in the manufacturing sub-sector recorded inflation rates higher than the sector average of 19.2%.

The report said the manufacture of coke, refined petroleum products, and nuclear fuel recorded the highest inflation rate of 56.4%, while the Manufacture of motor vehicles, trailers, and semi-trailers recorded the least inflation rate of -3.5 percent.

Petroleum price index

The report pointed out that the producer inflation rate in the petroleum sub-sector was -4.0% in December 2020.

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 a record 58.4 percent in November 2021.

However, it dropped to 56.4% in December 2021.

Mining and quarrying sub-sectors

The Ghana statistical service noted that the producer price inflation in the Mining and Quarrying sub-sector decreased by 1.7 percentage points over the November 2021 rate of 1.8% to record 0.1% in December 2021.

“The producer inflation for the Manufacturing sub-sector, which constitutes more than two-thirds of the total industry, decreased by 0.8 percentage points to record 19.2%. The utility sub-sector recorded a 0.2% inflation rate for December 2021.”

Producer price inflation trends

In December 2020, the producer price inflation rate for all industries was 7.0%. The rate increased continuously to 13.0% in March 2020 but declined to 10.9% in April 2021.

In May 2021, the rate increased to 11.8% but decreased continuously to a record of 8.1% in August 2021. The rate increased continuously to 13.6% in November 2021 but declined slightly to 12.8% in December 2021.

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