By Fred SARPONG
The Producer Price Index (PPI) for Ghana, which measures the average change over time in the prices received by domestic producers for the production of their goods and services for the one year up to February 2009, increased to 12.27% from the January 2009 figure of 11.19%.
This implies that ex-factory prices for all industry, which includes manufacturing, mining and quarrying and utilities sub-sectors were on average 12.27% higher in February 2009 than they were in February 2008.
According to figures released by the Ghana Statistical Service (GSS) last week, this represents an increase of 1.08 percentage points in producer price inflation over that of January 2009.
The rates of inflation for the three sub-sectors were: mining and quarrying, 37.48%; manufacturing, 10.39%; and utilities, 1.49%.
The rate of producer prices producer price inflation in February 2009 compared to February 2008 for mining and quarrying, manufacturing and utilities sub-sectors increased 7.0, 0.04 and 0.23 percentage points respectively.
In the manufacturing sub-sector, 13 out of 16 major groupings showed appreciable increases of at least 10%, in their index level ranging from 10.07% for manufacturing of fabricated metal products; except machinery and equipments to 103.47% for manufacture of machinery and equipments.
Magnus Ebo Duncan, Director of Economic Statistics Division at GSS, said the change of gold price on the world market affected the overall industry of the index.
He indicated that even though prices on utilities in the country have been stable for sometimes now, the importation of electricity to other neighbouring countries also attributed to the increase of the overall industry figure of 12.27%.
The monthly change in the all industry PPI for February 2009 was 3.15%. The corresponding changes for the major sub-sectors were: mining and quarrying 13.62%; manufacturing 1.53%, and utilities 0.25%.
The rise in the index for mining and quarrying is strongly associated with the increase in the prices of metal ores which represent 95% of the output of the sub-sector.
Three out of 11 subgroups that contributed at least 4% each to the total manufacturing weight have increases of at least 1% in their index level. These subgroups are production, processing and preservation of meat, fish, fruit, vegetable, oil and fats; manufacture of other food product; and manufacture of non-metallic mineral products.
The year on year inflation from the producer’s perspective for all industry and manufacturing was rising steadily, until October 2008 when it nose-dived.
Within the same period, inflation in the mining industry remained unstable, recording three month cyclical fluctuations, until July 2008 when it consistently continued to fall till November 2008.
During the month of February 2009, inflation in the mining and quarrying sub-sector showed an increase and recorded the highest, with utilities recording the lowest.
All the sub-sectors recorded some increases in their index levels, with manufacturing and utilities sub-sectors recording increases of less than 0.5 percentage points in their inflation.
The Producer Price Index (PPI) for Ghana, which measures the average change over time in the prices received by domestic producers for the production of their goods and services for the one year up to February 2009, increased to 12.27% from the January 2009 figure of 11.19%.
This implies that ex-factory prices for all industry, which includes manufacturing, mining and quarrying and utilities sub-sectors were on average 12.27% higher in February 2009 than they were in February 2008.
According to figures released by the Ghana Statistical Service (GSS) last week, this represents an increase of 1.08 percentage points in producer price inflation over that of January 2009.
The rates of inflation for the three sub-sectors were: mining and quarrying, 37.48%; manufacturing, 10.39%; and utilities, 1.49%.
The rate of producer prices producer price inflation in February 2009 compared to February 2008 for mining and quarrying, manufacturing and utilities sub-sectors increased 7.0, 0.04 and 0.23 percentage points respectively.
In the manufacturing sub-sector, 13 out of 16 major groupings showed appreciable increases of at least 10%, in their index level ranging from 10.07% for manufacturing of fabricated metal products; except machinery and equipments to 103.47% for manufacture of machinery and equipments.
Magnus Ebo Duncan, Director of Economic Statistics Division at GSS, said the change of gold price on the world market affected the overall industry of the index.
He indicated that even though prices on utilities in the country have been stable for sometimes now, the importation of electricity to other neighbouring countries also attributed to the increase of the overall industry figure of 12.27%.
The monthly change in the all industry PPI for February 2009 was 3.15%. The corresponding changes for the major sub-sectors were: mining and quarrying 13.62%; manufacturing 1.53%, and utilities 0.25%.
The rise in the index for mining and quarrying is strongly associated with the increase in the prices of metal ores which represent 95% of the output of the sub-sector.
Three out of 11 subgroups that contributed at least 4% each to the total manufacturing weight have increases of at least 1% in their index level. These subgroups are production, processing and preservation of meat, fish, fruit, vegetable, oil and fats; manufacture of other food product; and manufacture of non-metallic mineral products.
The year on year inflation from the producer’s perspective for all industry and manufacturing was rising steadily, until October 2008 when it nose-dived.
Within the same period, inflation in the mining industry remained unstable, recording three month cyclical fluctuations, until July 2008 when it consistently continued to fall till November 2008.
During the month of February 2009, inflation in the mining and quarrying sub-sector showed an increase and recorded the highest, with utilities recording the lowest.
All the sub-sectors recorded some increases in their index levels, with manufacturing and utilities sub-sectors recording increases of less than 0.5 percentage points in their inflation.
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