Ghana’s Producer Price Inflation (PPI) rose to 33% in October, increasing production costs across sectors, likely driving higher prices for goods and services soon
Ghanaians should brace themselves for a continuous upward surge in prices of goods and services as the cost of producing goods is still on an upward trajectory.
The latest report published by the Ghana Statistical Service (GSS) reveals that the Producer Price Inflation (PPI) has jumped to 33% in October up from 30.5% in September. This represents a 2.5 percentage point increase in just a month signifying a steady rise in production costs for producers.
The statistical service further states that the month-on-month change in the PPI between September 2024 and October 2024 was 3.0%. This means that businesses or producers are facing higher costs in their operations.
With the rising costs for businesses, there is a high risk that the producers are likely to pass the additional costs on to consumers. In simple terms, the price of goods and services you buy is likely to go up in the coming weeks.
The Numbers By Sectors
According to the data published by the GSS, the producers in the Industrial sector saw a sharp rise with inflation climbing from 43.3% in September to 48.8% in October.
Industries like manufacturing are feeling the heat, which could impact the cost of everyday items like processed foods and clothing.
The Construction sector also experienced a PPI rise hitting 31.5% in October. If you’re planning to build or renovate, brace yourself for higher costs on materials and labor.
The Services sector also maintained its rate recording 12.4% in October same as September.
The Mining and Quarrying sector saw the greatest hit with a whopping 54.3% PPI for October 2024.
However, all wasn’t gloomy as the Water and Waste Management Sector rather recorded the lowest PPI of 4.1%.
The Impact
With already existing inflationary pressures, Ghanaians must keep an eye on their spending as these rising production costs could ripple through the economy, hitting your pockets sooner rather than later.
For now, producers are bearing the brunt, but it’s only a matter of time before the impact reaches everyday Ghanaians.
