The Producer Price Inflation (PPI) year-on-year rose to 13 per cent in December from 9.9 per cent in November 2019.
The rise in the PPI was influenced by the manufacturing sector.
The December rate is the highest in 12 months.
That in January 2019 was 3.4 per cent and rose to 5.4 per cent in February.
It was 7.1 per cent in March and April.
It fell to 6.7 per cent in May but resumed the upward trend in June, recording a rate of 7.1 percent.
The producer inflation quickened to 10.2 per cent in August, dropped to 8.9 per cent in October, then rose to 9.9 per cent in November before quickening to 13.0 per cent to end 2019, according to GSS data.
Deputy Government Statistician Araba Forson on Thursday, January 23, 2019, told reporters the increase was as a result of the rise in inflation rate in the manufacturing sector.
“For manufacturing, the rate for December 2019 was 4.3 percentage points higher than that of November 2019 which was 4.5 per cent,” Araba Forson said.
“It is more likely that it will translate into prices at the factory gates.”
She explained, “the rise in price of the inputs will result in increases in prices of products assuming that most of their inputs come from outside.”
Key Points:
- The producer inflation rate for the petroleum sector in December 2019 was 13.0%.
- This represents a 3.1 percentage points increase relative to the rate recorded in November.
- The mining and quarrying sub-sector recorded the highest year-on-year rate of 33.7%.
- Utilities sub-sector was 12.8%, while the manufacturing sub-sector recorded the lowest year-on-year rate of 8.8%.
The producer price index, PPI, measures the average change over time in the prices received by domestic producers for the production of their goods and services.
By Eben Agyekum-Boateng|3news.com|Ghana