The annual producer price inflation fell to 18.0 percent in July from 19.1 percent in June, due in part to slower increases in food prices.

The acting Government Statistician, Dr. Philomena Nyarko, explained at a news conference in Accra that the ex-factory prices of goods for all industry rose on average by 18 percent in July 2012 compared to the same period in 2011.

She said food and beverages, chemical products and textiles recorded sharp declines in the rate of inflation during July, accounting for the fall index.

In spite of the double-digit inflation in the wholesale market, the country has managed to keep consumer price inflation below 10 percent.? Annual consumer price inflation increased marginally to 9.5 percent in July.

The month-on-month change in PPI was 0.7 percent, following a rate of 2.5 percent in June.
Dr. Nyarko said the producer inflation rate in the mining and quarrying sector increased by 0.8 percentage points to 20.3 percent relative to the rate of 19.5 percent recorded in April.

Manufacturing, which constitutes more than two-thirds of total industry, decreased to 20 percent compared to a rate of 21.9 percent in June.

She said, during the month of July, five out of the 16 major groups in the manufacturing sector recorded inflation rates higher than the sector average of 20 percent.

Manufacture of textiles recorded the highest inflation rate 57.1 percent whilst manufacture of machinery and equipment recorded negative inflation of (-7) percent.

Mining and quarrying recorded the highest year-on-year producer inflation rate of 20.3 percent, followed by manufacturing 20.0 percent. Utilities recorded the lowest rate of 10.6 percent.

Dr. Nyarko said the monthly changes in the producer price index indicated that mining and quarrying recorded the highest rate of 2.4 percent.

Mr. Ebo Duncan, a director of the Ghana Statistical Service, in an earlier interview said: ?The exchange rate depreciation has made some imported foods more expensive and their weight on inflation is huge.?

By Benson AFFUL

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