Ghana Producer Price Index & Inflation July 2023 Update

This press release covers the measurement of the Producer Price Index (PPI) and Producer Inflation in Ghana for July 2023. It explains the computation based on fixed baskets of products and reference periods, highlighting the year-on-year inflation rate at factory prices for goods and services.

• Ghana
• Producer Price Index
• Inflation
• Economy

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1. PRESS RELEASE GHANA PRODUCER PRICE INDEX AND INFLATION JULY 2023 16th AUGUST 2023

2. In this release, we present: Definition and Measurement of the Producer Price Index (PPI) Producer Price Index and Producer Inflation for July 2023 Disaggregation of the July 2023 Producer Inflation Highlights of July 2023 Producer Inflation 16/08/2023 2

3. Definition and Measurement of PPI and Inflation (1/2) The Producer Price Index (PPI) measures the average change over time in the selling prices of goods and services as received by domestic producers. Price collected for the computation of PPI are known as factory gate prices, which are the prices firms assign to their products. These prices exclude sales and excise taxes, government subsidies other costs incurred by other intermediaries and consumers The rate of Producer Inflation is the relative change in PPI between periods 16/08/2023 3

4. Definition and Measurement of PPI and Inflation (2/2) PPI computation is based on a fixed basket of products. Firms are the primary source of data Firms are selected based on the Integrated Business Establishment Survey Variables for the computation of PPI are weights, prices, quantities and products. Two reference periods for the computation of PPI are the weight reference (industry and product shares) and the index reference for price comparison. The computation is done from a dual time perspective, monthly and annually 16/08/2023 4

5. Reference Periods - PPI and Inflation Weight Reference-2019 Weight reference at the industry level is based on 2019 Gross Value Output (GVO) Selection of firms is based on the Integrated Business Establishment Survey (II) Index Reference (Price Comparison) March 2020 to February 2021 =100 16/08/2023 5

6. PPI Weights 16/08/2023 6

7. Producer Price Index and Producer Inflation for July 2023 Month Year-on-year inflation rate at factory prices for all goods and services was 32.7 % in July 2023. PPI Inflation (03/2020-02/2021 =100) Monthly Yearly 194.7 0.6 29.2 June 2023 147.8 -1.9 37.1 July 2022 p196.3 p0.8 p32.7 The monthly producer inflation rate was 0.8%. July 2023 p = provisional 16/08/2023 7

8. Disaggregation of the June and July 2023 Producer Inflation by Sectors June 23 July 23 40.0 35.7 35.0 31.3 30.0 25.0 Percent 19.3 18.5 20.0 17.6 17.0 15.0 10.0 5.0 0.0 Industry Construction Service 16/08/2023 8

9. Disaggregation of the July 2023 Producer Inflation by Sub-Sectors Yearly Monthly 1.6 Mining Electricity and gas 69.6 Overall Transportaton and storage 0.8 49.2 Accommodation and food service activities Mining 0.7 38.9 Water supply; sewerage, waste management Manufacturing 0.3 38.5 Accommodation and food service activities Construction 0.1 35.0 Transportaton and storage Overall 32.7 0.0 Electricity and gas Manufacturing 0.0 28.0 Water supply; sewerage, waste management Construction 0.0 18.5 Information and communication Information and communication 11.1 -0.1 16/08/2023 9

10. Change in Sub-Sector Producer Inflation for July 2023 16/08/2023 10

11. Producer Inflation for Manufacturing Sub-Sector for July 2023 16/08/2023 11

12. Producer Inflation for Mining and Quarrying Sub-Sector for July 2023 16/08/2023 12

13. Producer Inflation for Construction Sub-Sector for July 2023 18/08/2023 13

14. Producer Inflation for Services Sub-Sector for July 2023 16/08/2023 14

15. Highlights (1/2) 38.9 % Mining and quarrying 28.0% Manufacturing 38.5% Water supply, sewerage and waste managem ent 35.7 % Industry 32.7% July 2023 yearly Producer Inflation 69.6% Electricity and gas 29.2% June 2023 yearly Producer Inflation 46.0 % 17.0% Service Transport and storage 18.5% Construction 11.1% 35.0 % Information and communication Accommoda tion and food 16/08/2023 15

16. Highlights (2/2) 0.3% Manufact uring 1.6 % Mining and quarrying 0.9 % Industry 0.0% Water supply, sewerage and waste management 0.0% Electricity and gas 0.8 % July 2023 monthly Producer Inflation 0.0% Service 0.1 % 0.0 % Transport and storage Construction 0.6 % June 2023 monthly producer inflation 0.7% Accommodati on and food -0.1% Information and communication 16/08/2023 16

17. THANK YOU End of Press Release for July 2023 Producer Price Index For enquiries, please contact: Mr. Anthony Krakah (Head, Business & Industrial Statistics, GSS) Anthony.krakah@statsghana.gov.gh