Industrial Producer Price Inflation slows to 40.2% in Dec 2024
The Industrial Producer Price Index (I-PPI) inflation rate for December 2024 stood at 40.2%, reflecting a year-on-year increase in industrial producer prices between December 2023 and December 2024.
This figure represents a 1.2 percentage-point decrease from the 41.4% recorded in November 2024. On a month-on-month basis, the I-PPI declined by 2.3% between November and December 2024.
Sub-Sector Performance
Mining and Quarrying
The Mining and Quarrying sub-sector recorded an inflation rate of 42.8% in December 2024, up by 0.9 percentage points from November’s rate of 41.9%. Notably, the extraction of crude and natural gas inflation rose significantly to 21.0%, an increase of 3.9 percentage points from November’s 17.1%. However, the mining of metal ores decreased to 59.3% from the previous 61.0%, while mining support service activities maintained an inflation rate of 61.0%.
Manufacturing
The Manufacturing sub-sector saw a decrease in inflation, recording 18.9% in December 2024 compared to 19.4% in November. Among the 23 major groups within this sector, the manufacture of basic metals had the highest inflation rate at 43.8%, followed by the manufacture of motor vehicles, trailers, and semi-trailers at 38.3%.
Electricity and Gas
The Electricity and Gas sub-sector experienced a decline in inflation, recording an 8.1% rate in December 2024, a decrease of 2.3 percentage points from the 10.4% rate in November 2024.
Water Supply, Sewerage, and Waste Management
This sub-sector recorded an inflation rate of 5.0% in December 2024. Waste collection, treatment, and disposal activities; materials recovery recorded a slight increase to 7.2% from 7.1% in November. Water collection, treatment, and supply recorded the lowest inflation rate at 2.9%.
Sectoral Implications
The decline in the overall I-PPI inflation suggests a moderation in industrial producer price pressures, despite varying trends across sub-sectors. The decrease in inflation in the Manufacturing and Electricity and Gas sub-sectors indicates easing cost pressures, which could benefit industries and consumers. However, the sustained high inflation in the Mining and Quarrying sub-sector, particularly in mining support services and metal ore extraction, reflects persistent challenges in managing costs within this critical sector. The I-PPI performance provides insight into the cost dynamics faced by producers in Ghana’s industrial economy and serves as a critical indicator of the potential pricing trends for the months ahead.
