September 27, 2020

Producer Price Inflation for June records marginal increase

The Producer Price Inflation for June 2020 saw a marginal increase compared to the same period last month.

The PPI increased by 0.3 percent, recording 8.7 percentage points, compared to 8.4 percent it recorded same time in May.

This means the year on year PPI, thus between June 2019 and June 2020, increased by 8.7 percent.

The month-on-month change in the PPI between May and June 2020, was also pegged at 1.8 percent.

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

Government Statistician, Samuel Kobina Annim, gave a breakdown of the figures.

“The Producer Inflation for the month of June was 8.7 percent. This means that comparing 8.4 producer inflation for May 2020 and 8.7 for June 2020, there has been an increase of 0.3 percentage points. On a month on month basis, producer inflation for June 2020 was 1.8 percent. This compares with 1.2 percent for May 2020. Year on year from the producer’s perspective was 8.7 percent. This is a 0.3 percentage points producer inflation higher than the rate recorded in May 2020. The month on month producer inflation was 1.8 percent for the month of June 2020. This compares with a producer inflation of 1.2 for the month of May 2020,” he said.

Meanwhile, the manufacturing sub-sector recorded the highest inflation of 2.3 percent month on month basis, followed by mining and quarrying sub-sector with 1.8 percent.

The utilities sub-sector recorded no inflation in the month of June 2020.

The Mining and Quarrying sub-sector recorded the highest year-on-year producer price inflation rate of 35.2 percent, followed by Utilities sub-sector with 12.1 percent.

The manufacturing sub-sector recorded the lowest year-on-year producer inflation of 2.7 percent.

The producer inflation rate in the petroleum sub-sector was 1.2 percent in June 2019. Subsequently, the rate increased to record 3.1 percent in August 2019 but declined to -5.7 percent in October 2019.

The rate then increased consistently to record 20.6 percent in January 2020 but constantly declined to record -15.4 percent in May 2020. However, the rate increased again to record -5.4 percent in June 2020.

Source: Business