Producer Price Inflation drops to 26.1% in December 2024
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The Ghana Statistical Service (GSS) has announced a decline in the country’s Producer Price Inflation (PPI) rate for December 2024, recording 26.1 percent, down from 27.0 percent in November 2024. This marks a 0.9 percentage point reduction in the year-on-year producer inflation.
The PPI, which measures the average change over time in the selling prices received by domestic producers for goods and services, also registered a month-on-month decline of 1.4 percent between November and December 2024.
Sectoral breakdown
Producer inflation within the industrial sector, excluding construction, saw a decline from 41.4 percent in November 2024 to 40.2 percent in December 2024. The construction sector recorded a rate of 29.6 percent, while the services sector experienced a significant drop, ending the year at 6.8 percent.
Among the various economic activities, mining and quarrying had the highest inflation rate at 42.8 percent. This was followed by accommodation and food service activities, which recorded 30.5 percent, and the construction sector at 29.6 percent.
Conversely, the water supply, sewerage, and waste management sector recorded the lowest inflation rate at 5.0 percent.
Importance of PPI
The Producer Price Index is a critical economic indicator used to assess changes in the prices producers receive at the factory gate. The data serves as a foundation for understanding inflationary pressures and guiding economic policies aimed at stabilising prices and managing economic growth.
Industry highlights
December 2024 saw varied inflation rates across industries. While mining and quarrying remained a key driver of inflation, sectors like electricity and gas recorded lower rates of 8.1 percent, and manufacturing stood at 18.9 percent. Transportation and storage registered 23.1 percent, while accommodation and food service activities maintained higher-than-average inflation at 30.5 percent.
ABOUT: Nana Kwesi Coomson
[email protected] An Entrepreneur, Corporate Social Responsibility, Corporate Communications Executive and Philanthropist. Editor-in-Chief of www.233times.com. A Senior Journalist with Ghanaian Chronicle Newspaper. An alumnus of Adisadel College where he read General Arts. His first degree is in Bachelor of Arts - Political Science (major) and History (minor) from the University of Ghana. He holds MSc in Corporate Social Responsibility (CSR) and Energy with Public Relations (PR) from the Robert Gordon University in the United Kingdom. He is a 2018 Mandela Washington Fellow who studied at Clark Atlanta University in USA on the Business and Entrepreneurship track.
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