Ghana’s producer inflation drops sharply in December
Ghana’s Producer Price Inflation (PPI) rate fell to 52.2% in December 2022, down from 78.1% the previous month, according to data released by the Ghana Statistical Service. The month-on-month change in the PPI between November and December 2022 was negative 13.3%.
The construction sector saw a significant decrease in PPI, with a rate of 65.7% in December 2022 compared to 94.3% in November 2022. The services sector also saw a decrease in PPI, from 12.6% in November 2022 to 10.0% in December 2022.
However, some sectors recorded PPI rates above the national average. The mining and quarrying sector had a PPI rate of 73.4%, manufacturing recorded 64.2%, and transport and storage had a rate of 63.6%. The information and communication sector had the lowest PPI rate of 2.7% in December 2022.
The PPI is a measure of inflation at the wholesale level, compiled from thousands of indexes measuring producer prices by industry and product category. The decrease in the PPI rate in December 2022 represents a 25.9 percentage point decrease in producer inflation from the previous month.
According to industry experts, the decrease in PPI can be attributed to a combination of factors, including a decrease in raw material costs and a slowdown in economic activity. The government and central bank will closely monitor the PPI in the coming months to assess the impact on overall inflation and guide monetary policy decisions.
