Producer price inflation ends 2024 at 26.1%

By Juliet ETEFE ([email protected])

Producer price inflation (PPI) declined slightly to 26.1 percent year-on-year in December 2024, according to latest data from the Ghana Statistical Service.

This marked a 0.9 percentage point decrease in producer inflation relative to the rate recorded in November 2024 (27.0 percent).  On a month-on-month basis, the PPI between November 2024 and December 2024 was -1.4 percent.

The PPI serves as a crucial metric for assessing inflationary pressures within Ghana’s production sectors, through capturing the average price shifts received by domestic producers for their goods and services.

Breaking down the data by sectoral basis, producer inflation in the industry sector – excluding the construction sector – decreased from 41.4 percent in November 2024 to 40.2 percent in December 2024.

The construction sector rate also decreased to 29.6 percent in December 2024. In the services sector, the rate was 6.8 percent in December 2024.

Meanwhile, mining and quarrying (42.8 percent), accommodation and food service activities (30.5 percent) and construction (29.6 percent) recorded inflation rates above the national average of 26.1 percent.

In contrast, water supply, sewerage and waste management activity recorded the lowest rate of 5.0 percent in December 2024.

Sector-specific insights

Year-on-year producer inflation for the industry sector, less construction, was 40.2 percent in December 2024 with a monthly change rate of -2.3 percent.

Among sub-sectors, mining and quarrying recorded the highest year-on-year producer price inflation rate of 42.8 percent, followed by the manufacturing sub-sector with 18.9 percent. The water supply, sewerage and waste management sub-sector recorded the lowest year-on-year producer inflation rate of 5.0 percent.

The electricity and gas sub-sector recorded an 8.1 percent inflation rate for December 2024, a decrease of 2.3 percentage points over the November rate of (10.4 percent).

Month-on-month basis, the water supply, sewerage and waste management sub-sector recorded the highest month-on-month inflation rate of -0.01 percent, followed by the manufacturing sub-sector with -0.2 percent. The mining and quarrying sub-sector also recorded the lowest inflation rate of -2.3 percent month-on-month in December 2024.

Construction PPI:

For the construction sector, year-on-year producer inflation was 29.6 percent in December 2024 with a monthly change rate of -0.9 percent.

Within this sector, the civil engineering sub-sector recorded the highest year-on-year producer price inflation rate of 36.1 percent, followed by the specialised construction sub-sector with 19.0 percent.

The buildings sub-sector recorded the lowest year-on-year producer inflation rate of 15.3 percent in the construction sector.

On a month-on-month basis, specialised construction activities recorded the highest inflation rate of 0.6 percent followed by the civil engineering sub-sector, which recorded -0.04 percent. The buildings sub-sector recorded the lowest inflation rate of -3.1 percent in December 2024.

Services

The year-on-year service producer price inflation was 6.8 percent in December 2024, accompanied by a monthly change rate of -1.2 percent.

In terms of sub-sectors, accommodation and food service recorded the highest year-on-year producer price inflation rate of 30.5 percent, followed by the transport and storage sub-sector with 23.1 percent.

The information and communication sub-sector recorded the lowest year-on-year producer inflation rate of 2.9 percent. It also recorded the highest month-on-month inflation rate of -0.1 percent, followed by the accommodation and food service sub-sector with -2.4 percent. The transport and storage sub-sectors recorded the lowest month-on-month inflation rate -6.0 percent in December 2024.

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