ACCRA: Ghana’s producer price inflation (PPI) slowed to 13.2 percent year-on-year in April from 14.3 percent the month before, driven mainly by stability of the local currency, the statistics office said on Wednesday.
PPI is a major component of consumer inflation, which eased to 18.7 percent in April from 19.2 percent the month before. The West African country is under a three-year aid deal with the International Monetary Fund to restore fiscal balance. The local cedi currency rallied in April to nearly a year high on sustained forex inflows from offshore and local sources, including regular sales by the central bank.
“The stability of the cedi in April led to appreciable declines in producer prices in the mining and quarrying sector, as well as the cost of utilities,” deputy government statistician Baah Wadieh told a news conference in Accra. Year-on-year producer inflation for mining and quarrying fell most by 7.6 percentage points to -0.7 percent compared to 6.9 percent in March. Utilities decreased to 37.1 percent from 43.4 percent. Manufacturing increased by 1.9 points to 12.0 percent.
