Producer Price Inflation (PPI) decreased slightly by 0.9 percentage points, settling at 26.1% in December 2024. This marks a change from November 2024, when the PPI stood at 27%. The month-on-month PPI change between November and December 2024 was -1.4%.
According to the Ghana Statistical Service, the PPI for the Industrial sector, excluding construction, decreased from 41.4% in November 2024 to 40.2% in December 2024. Similarly, the construction sector saw a drop, with inflation reducing to 29.6% in December 2024.
In the Services sector, the rate stood at 6.8% in December 2024, reflecting a more moderate inflation increase.
However, several sectors posted inflation rates above the national average. These include Mining and Quarrying (42.8%), Accommodation and Food Services (30.5%), and Construction (29.6%). Conversely, the Water Supply, Sewerage, and Waste Management sector recorded the lowest inflation rate of 5.0%.
Industry Sector Breakdown
In the Industrial sector, two of the 23 major manufacturing sub-sectors recorded inflation rates exceeding the sector’s average of 18.9%. The Manufacture of Basic Metals had the highest inflation rate, reaching 43.8%, followed by the Manufacture of Motor Vehicles, Trailers, and Semi-Trailers, which recorded 38.3%.
The Waste Collection, Treatment, and Disposal Activities, including Materials Recovery, saw a slight increase to 7.2%, up from 7.1% in November 2024. Meanwhile, the Water Collection, Treatment, and Supply sub-sector had the lowest inflation rate in the industry, with 2.9% in December 2024.
Services Sector Highlights
In the Services sector, the Transport and Storage sub-sector saw a significant decrease in PPI, dropping 8.6 percentage points from 31.7% in November 2024 to 23.1% in December 2024.
The Accommodation and Food Services sub-sector also experienced a decline of 2.0 percentage points, from 32.5% in November 2024 to 30.5% in December 2024. Additionally, the Information and Communication sub-sector recorded an inflation rate of 2.9% in December 2024.
Source : myjoyonline.com Picture credit :international finance
