Inflation | TechBiz365

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Ghana's Producer Price Inflation (PPI) surged to 33.2% in August 2024, marking a significant increase from the 29.1% recorded in July. This jump is largely attributed to heightened inflation within the Industry sector, which experienced a rise from 37.9% to 44.2%, according to the latest data from the Ghana Statistical Service (GSS). The mining and quarrying sector continues to exert pressure on the overall PPI, with inflation in the extraction of metal ores soaring to 71.7% in August, up from 54.2% in July. This sharp rise indicates increased cost pressures in the mining of raw materials, making this sector the largest contributor to the inflation hike. On the flip side, the extraction of crude oil and natural gas saw a notable decrease, with inflation falling by over 10 percentage points to 33.4%( CitiNews )( Business Week Ghana ). However, it wasn’t all a story of increases. The construction sector saw a decline in its inflation rate, falling to 27.7% from 30.5% in July. This slight dip suggests some stability in building costs, but the sector still faces inflationary pressures. Specialized construction activities experienced the most noticeable monthly inflation increase, growing by 2.4%( CitiNews )( MyJoyOnline ). In contrast, the services sector also experienced inflationary growth, moving from 12.6% in July to 14.0% in August. Meanwhile, water supply, sewerage, and waste management recorded the lowest inflation rate among all sectors, at just 3.2%, reflecting its relative insulation from broader inflationary trends. This increase in producer price inflation points to a challenging environment for businesses operating within these high-inflation sectors. It signals a potential trickle-down effect on consumer prices as companies may adjust their pricing strategies to mitigate rising production costs. For manufacturers, particularly those producing basic metals and beverages, with inflation rates at 51.9% and 41.3%, respectively, cost management will be critical in the coming month

September 18, 2024

Ghana’s Producer Price Inflation Climbs to 33.2% in August 2024: What It Means for Key Sectors

Ghana’s Producer Price Inflation rose to 33.2% in August 2024, with the mining sector and