The latest data published by the Ghana Statistical Service has revealed that the surge in Producer Price Inflation for July 2024 was caused by an increase in Industry and Construction sectors.
The Year-on-Year Producer Price Inflation (PPI) of Ghana has been on an upward trajectory for the fifth consecutive time surging to 29.1% in July 2024.
According to the data, the year-on-year producer inflation rate for the industry sector increased from 32.3% in June 2024 to 37.9% in July 2024. This indicates that the cost of producing goods in this sector has risen significantly probably driven by higher prices for raw materials, energy, and production inputs.
Moreover, the construction sector also saw a notable increase in producer inflation, rising from 29.4% in June 2024 to 30.5% in July 2024. The consistent rise in construction costs could be probably attributed to factors such as increased material prices, labor costs, and supply chain disruptions.
The services sector however experienced lower inflation rates compared to the other sectors, recording a slight increase from 12.1% in June 2024 to 12.6% in July 2024. This suggests that the cost of providing services, including transportation, communications, and business operations, is gradually rising, impacting service providers and consumers alike.
The trend signifies an increase in production costs across these sectors, which could eventually be passed on to consumers in the form of higher prices for goods and services.
The industry and construction sectors, in particular, could see the largest impact on consumer prices given their significant inflation rates.
Further scrutiny of the GSS data at the subsector level reveals that Mining and Quarrying recorded the highest year-on-year inflation at 48.8% followed by construction recording 30.5%.
Water supply and sewerage on the other hand recorded the least year-on-year inflation at 2.6%.
