Ghana’s Producer Price Inflation for November 2019 inched up to 9.9 percent

This represents an increase of 1.0 percentage points from the 8.9% percent recorded in October.

Sub-sectoral performance

The producer price inflation in the mining and quarrying subsector decreased by 0.5 percentage points over the October 2019 rate, of 34.4 per cent to record 33.9 per cent in November 2019.

The producer price inflation for manufacturing, which constitutes more than two-thirds of total industry, increased by 1.4 percentage points to record 4.5 per cent. The utility sub-sector recorded inflation rate of 12.7 per cent for November 2019, indicating a slight increase of 0.1 percentage point over the October 2019 rate of 12.6 per cent.

Trends

In November 2018, the producer price inflation rate for all industry was 6.5 percent. The rate declined to 3.4 percent in January 2019. Thereafter, it resumed an upward trend to record 7.1 percent in April 2019 but declined to 6.7 per cent in May 2019.

Since then, it increased consistently to record 10.2 percent in August 2019 but declined to 8.9 percent in October 2019. The rate increased to 9.9 percent in November 2019.

Manufacturing Sector

During November 2019, eight out of the 16 major groups in the manufacturing subsector recorded inflation rates higher than the sector average of 4.5 percent.

Manufacture of machinery and equipment recorded the highest inflation rate of 24.7 percent, while Manufacture of coke, refined petroleum products and nuclear fuel recorded the least inflation rate of -1.7 per cent.

Petroleum Price Index

The producer inflation rate in the petroleum subsector was 30.6 per cent in November 2018. The rate decreased continuously to record 3.8 percent in January 2019. Thereafter, the rate increased consistently to record 17.2 percent in April 2019 but declined to 1.2 percent in June 2019.

However, it increased to 3.1 percent in August 2019 but declined consistently to record -5.7 percent in October 2019. The rate increased to record -1.7 percent in November 2019.