Producer Price Inflation for July 2021 drops to 8.4%

The year-on-year Producer Price Inflation (PPI) rate for July 2021, has dropped to 8.4% compared to 10.1% recorded in June.

The rate constitutes a 1.7 percentage point decrease in producer inflation relative to the rate documented in June 2021.

Professor Samuel Annim, the Government Statistician, who announced this said the month-on-month change in producer price index between June 2021 and July 2021 was 0.1%.

He further stated the producer price inflation in the Mining and Quarrying sub-sector decreased by 7.3 percentage points over the June 2021 rate of 9.5% to record 2.2% in July 2021.

The producer inflation for the Manufacturing sub-sector, which constituted more than two-thirds of the total industry, reduced by 0.8 percentage points at 12.0%.

The utility sub-sector recorded a 0.1% inflation rate for July 2021.

Prof Annim said in July 2021, 4 out of the 16 major groups in the manufacturing sub-sector documented inflation rates higher than the sector average of 12.0%.

The manufacture of coke, refined petroleum products and nuclear fuel documented the highest inflation rate of 25.2%, while the manufacture of electrical machinery and apparatus documented the least inflation rate of 0.0%.

On the petroleum price index, he said, the producer inflation rate in the petroleum sub-sector was -4.5% in July 2020.

Emphasizing on the trends, he said in July 2020, the producer price inflation rate for all industries was 9.3%, the rate reduced to 9.0% in August 2020 and increased to 9.7% in September 2020 but declined consistently to document 7.0% in December 2020.

In March 2021, the rate increased to 13.0%, however, in April 2021, it declined to 10.9%, rose to 11.8% in May, but reduced to 8.4% in July 2021.

Producer Price Inflation measures the average change over time in the prices received by domestic producers for the production of goods and services.