PPI drops 310bps to 25.1% in September
Producer Price Inflation (PPI) in September experienced a notable shift, reflecting both sector-specific dynamics and month-on-month fluctuations. According to data released by the Ghana Statistical Service, PPI exhibited a 3.1% decline, settling at 25.1% for the month, indicative of a more tempered pricing environment.
The month-on-month change in PPI from August 2023 to September 2023 registered at 2.7%, underscoring the inherent volatility in producer prices.
Delving into sectoral breakdowns, the Industry (excluding construction) sector witnessed a noteworthy reduction, with PPI sliding to 26.6% in September from 30.4% the previous month. Similarly, the Construction sector saw its PPI dip to 23.1% from 24.6% in August, emblematic of a broader cooling effect on pricing pressures within these key domains.
Meanwhile, the Manufacturing sector’s PPI was estimated at 16.0%, reflecting its relative stability compared to other sectors. However, beneath this apparent stability, a closer look reveals a tale of divergence, with 13 sub-sectors exceeding the manufacturing average, most notably in the manufacturing of textiles (68.9%), manufacturing of pharmaceuticals, medicinal chemical, and botanical products (66.1%), and manufacturing of other non-metallic mineral products (50.1%). These sub-sectors experienced inflation rates significantly higher than the sector’s average, underscoring underlying supply-side challenges and cost pressures.
The Services sector’s PPI increased from 15.5% in August 2023 to 16.1% in September 2023. This upward trajectory was not uniform, with 10 sub-sectors recording inflation rates exceeding the national average of 16.1%. Notable standouts included Information service activities (247.1%), Air transport (64.0%), and Postal and courier activities (47.3%), painting a nuanced picture of service-related pricing dynamics.
Additionally, sectors such as Electricity and gas (50.9%), Mining and quarrying (33.5%), Transportation and storage (28.8%), and Water supply, sewerage, and waste management (27.6%) all outpaced the national average, hinting at sector-specific challenges that warrant further scrutiny.
Amidst this spectrum of PPI fluctuations, Information and communication activity emerged as a beacon of relative stability, boasting the lowest PPI rate of 13.3% in September 2023.
