Prices fell at Ghana’s factory gate in March to result in a 1.8 percentage point reduction in the Producer Price Index ( PPI-producer/industry inflation) to 3.7 percent during the month of March. relative to the 5.5 percent rate recorded for February, the Ghana Statistical Service (GSS) announced here on Wednesday.
According to Anthony Kofi Amuzu, a Deputy Government Statistician, the monthly change rate was -0.3 percent between February and March, compared with the 1.0 percent for the period between January and February.
The PPI measures the average change over a given period in ex-factory prices of locally manufactured goods. Ghana’s PPI is referenced on September 2006, the base period with Manufacturing (Largest industry group), Mining and Quarrying and Utilities forming the all industry basket.
While all the sectors recorded decreases in their rates, Mining and Quarrying recorded the biggest fall of 3.4 percentage points to record an inflation rate of 5.8 percent in March, compared with the 9.2 percent recorded a month earlier.
Manufacturing fell 1.8 percentage points to 4.2 percent during the month under review, relative to the 6.0 percent in February, while Utilities recorded a 0.6 percentage point reduction to record a -0.6 percent of inflation.
The fall in Industry inflation for March mimics the fall in gold prices on the world stage, as prices for the yellow metal wavered for most part of the month.
Ghana is Africa’s second largest gold producer after South Africa and gold export is about 95 percent of Mining and Quarrying statistics in the calculation of producer inflation.
Gold production in the West African country hit a 40-year high in 2016 with a 4.1 million ounces production, up from 2.8 million ounces the previous year.
The country’s economy grew 8.5 percent last year up from a 3.7 percent growth in 2016 on account of firming commodity prices including the price of gold while oil production also went up with the coming n stream of the Tweneboah-Enyinra-Ntomme (TEN) field and part of the Sankofa field. Enditem