Ghana saw a slight decline in the Industrial Producer Price Inflation (I-PPI) rate in September 2024, which fell from 44.6 percent in August to 43.0 percent. This marks a year-on-year decrease of 1.6 percentage points.
The most substantial reduction in inflation occurred in the mining and quarrying sub-sector, which decreased from 54.2 percent in August to 48.7 percent in September.
Similarly, the manufacturing sub-sector also experienced a modest drop, with inflation decreasing from 22.9 percent to 21.8 percent. Within this sub-sector, four major groups reported inflation rates above the average for manufacturing. The manufacture of basic metals topped the list with an inflation rate of 52.0 percent, followed by beverages at 44.5 percent.
On the other hand, the electricity and gas sub-sector saw a more gradual decline, falling to 10.4 percent in September from 12.4 percent in August. The water supply, sewerage, and waste management sub-sector remained relatively stable, maintaining an inflation rate of 4.0 percent.
Conversely, the waste collection, treatment, and disposal activities, along with materials recovery, experienced a significant increase in inflation, rising from 2.9 percent in August to 6.8 percent in September.
The reduction in industrial producer inflation may indicate a moderation in production costs, which could be beneficial for both businesses and consumers. However, the persistent fluctuations in inflation rates across different sectors highlight the necessity for ongoing monitoring and strategic planning.