Ghana’s Producer Price Index for July increases to 8.8 percent

Producer Price Index for July 2019 increases to 8.8%.
The increase was driven largely by the Mining and Quarrying sector.
Manufacturing sub-sector recorded the lowest with 0.3 percent.

Statistics indicator July update

Ghana’s Producer Price Index (PPI) rose to 8.8 percent in July 2019.

This represents an increase of 1.7 percentage points from the 7.1 percent recorded in June.

What caused the increase?

The Deputy Government Statistician for the country, David Kombat, commenting on the increase said that the PPI for July was driven largely by the Mining and Quarrying sector.

Mining and Quarrying sector leads in inflation

For the year-on-year inflation, the Mining and Quarrying sector recorded the highest inflation of 27.6% in July.

It was followed by utility subsector with inflation of 6.9% with manufacturing recording the lowest inflation of 5.4%.

With respect to the monthly changes, Utilities recorded the highest inflation rate of 5.9 percent, followed by Mining and quarrying sub-sector with 4.8 percent.

The Manufacturing sub-sector recorded the lowest inflation rate of 0.3 percent.

What is the Producer Price Index?

The producer price index (PPI) is a group of indexes that calculates and represents the average movement in selling prices from domestic production over time.

PPI is a product of the Bureau of Labor Statistics (BLS).

The PPI measures price movements from the seller's point of view. Conversely, the consumer price index (CPI), measures cost changes from the viewpoint of the consumer. In other words, this index tracks change to the cost of production.