Ghana PPI at 48.3% yr/yr in Aug: stats office

by Reuters 21 views0

Ghana’s annual producer price inflation rose to 48.3 per cent in August, up from a revised figure of 47.2 per cent year-on-year in July.

This is according to the national statistics office.

The figure, the highest since January 2010, is an indication of the economic challenges facing the West African country, a former darling of frontier investors.

Ghana has seen sustained strong economic growth on the back of strong commodity exports but has opened talks with the International Monetary Fund aimed at reducing its budget deficit, curbing inflation and stabilising its currency.

The cedi currency fell nearly 40 per cent this year, but has bounced back in recent weeks. Government statistician Philomena Nyarko said the rise could help bring producer price inflation (PPI) under control.

(READ MORE: Ghana producer price inflation rises to 31.5% in April)

“We are seeing some stabilisation of the cedi and we expect that to have some easing effect on producer inflation in coming days, assuming there are no significant external shocks,” she told a news conference.

Producer price inflation is an advance indicator of consumer price inflation, which rose to a four-year high of 15.9 per cent in August. The initial July figure for producer price inflation was 47.4 per cent.