Producer Price Inflation drops from 78.1% to 52.2%

The Producer Price Inflation (PPI) rate for December 2022 was 52.2 per cent, down from 78.1 per cent the previous month.

This rate indicates that between December 2021 and December 2022 (year-on-year), the PPI increased by 52.2 percent, representing a 25.9 percentage point decrease in producer inflation relative to the rate recorded in November 2022 (78.1 per cent).

In a statement, the Ghana Statistical Service said the month-on-month change in the PPI between November and December 2022 was negative 13.3 percent.

The producer price inflation in the construction sector decreased to 65.7 per cent in December 2022 from 94.3 per cent in November 2022.

The rate in the construction sector decreased to 22.1 per cent in December 2022 from 26.6 per cent in November 2022.

In the Services sector, the rate decreased from 12.6 per cent in November 2022 to 10.0 per cent in December 2022.

Mining and quarrying at 73.4 per cent, manufacturing 64.2 per cent, transport, and storage; 63.6 per cent recorded rates above the national average, while information and communication activity recorded the lowest rate of 2.7 per cent in December 2022.

The Producer Price Index (PPI) measures the average change over time in the prices domestic producers receive for their output.

It is a measure of inflation at the wholesale level that is compiled from thousands of indexes measuring producer prices by industry and product category.