The cost of production of goods for the month of December 2018 went down significantly according to the Ghana Statistical Service (GSS). Per data from the service, the Producer Price Inflation (PPI) reduced to 4.4 per cent in December 2018 from the 6.5 per cent in November. The PPI measures the average change over time in the prices for the production of goods and services.
This rate according to the GSS, represents a 2.1 per cent point decrease in producer inflation, relative to the rate recorded in November 2018
Addressing a press conference in Accra, Acting Government Statistician, David Kombat, attributed the drop in the rate to the manufacturing sector. “The decrease in the overall inflation rate from 6.5 per cent in November 2018 to 4.4 per cent in December 2018 was as a result of the decrease in inflation rates in the manufacturing sector.”
According to the data, the producer inflation rate in the petroleum sub-sector also saw a considerable reduction. The rate reduced from 36.4 per cent in December 2017, to a record 10.1 per cent in December 2018.
Mr Kombat also noted that, the mining and quarrying sub-sector recorded the highest year-on-year producer price inflation rate of 8.5 per cent, followed by the manufacturing sub-sector with 4.5 per cent.
Meanwhile the Utilities sub-sector recorded the lowest year-on-year producer inflation of -0.1 per cent.
Mr Kombat said, there was a decrease in the manufacturing of food products from 1.6 per cent in December 2017, to 1.3 per cent in December 2018.
“Additionally the manufacturing of food and food products, the rates decreased from 1.6 per cent in December 2017 to 1.3 per cent in December 2018. It was as a result of decreases in prices of production and processing, and preservation of food products,” he added.
Even though there was inflation drop in some of the sectors, this will however not affect market prices, he said.
By Asabea Akonor
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