The Ghana Statistical Service (GSS) has announced a sharp increase in the Producer Price Inflation (PPI) rate, which rose to 33.0% in October 2024, compared to 30.5% in September. This marks a significant 2.5 percentage point rise, signalling growing price pressures within Ghana’s production sectors.
On a month-to-month basis, producer prices climbed by 3.0% between September and October, further highlighting the upward trend in inflationary pressures.
The PPI measures the average change over time in the prices domestic producers receive for their goods and services, offering insights into the inflationary trends across key sectors of the economy.
Sectoral AnalysisIn
The industrial sector, excluding construction, the PPI surged from 43.3% in September to 48.8% in October, reflecting heightened inflationary pressures in manufacturing, mining, and other industrial activities.
The construction sector, which plays a vital role in infrastructure development, also experienced a notable rise in inflation, reaching 31.5% in October.
The mining and quarrying sector emerged as the most inflation-hit, with its PPI skyrocketing to a staggering 54.3%, the highest among all sectors. In contrast, the water supply, sewerage, and waste management sector recorded the lowest inflation rate at 4.1%. Although significantly below the national average of 33.0%, this still indicates some level of price increases in the sector.
Implications
The rise in PPI suggests that producers are grappling with higher input costs, which could eventually trickle down to consumer prices if producers pass on these costs. This development raises concerns about the broader inflationary environment and its potential impact on the cost of living, industrial competitiveness, and economic growth.
Economists and policymakers are closely monitoring these trends to assess their implications for monetary policy, cost structures in industries, and overall economic stability.
Story by: Mercy Addai Turkson
