Ghana pro­ducer price in­fla­tion drops slightly to 3.6% in June

The Star Early Edition - - BUSINESS REPORT / INTERNATIONAL - Kwasi Kpodo

GHANA’S pro­ducer price in­fla­tion fell slightly to 3.6 per­cent year-on-year in June from 3.7 per­cent the month be­fore, mainly due to lower gold prices, the statis­tics of­fice said on Wed­nes­day.

Ghana, Africa’s sec­ond big­gest gold pro­ducer, is more than half­way through a three-year aid deal with the In­ter­na­tional Mon­e­tary Fund to re­store fis­cal bal­ance, in­clud­ing re­duc­ing per­sis­tently high in­fla­tion.

Min­ing and quar­ry­ing in­fla­tion de­clined to 12 per­cent from 18.2 per­cent in May while the man­u­fac­tur­ing sub-sec­tor also de­creased to 2.4 per­cent from 2.9 per­cent. Util­i­ties’ in­fla­tion was 1.3 per­cent com­pared to 1.2 per­cent the month be­fore.

“The push-down ef­fect was pri­mar­ily on ac­count of lower ex-fac­tory prices of gold in June, com­pared to sim­i­lar pe­riod last year,” gov­ern­ment statis­ti­cian Baah Wadieh told re­porters in Ac­cra.

Ghana was for years one of Africa’s fastest grow­ing economies but growth slumped in 2014 due to a fall in global com­modi­ties prices and fis­cal prob­lems in­clud­ing el­e­vated in­fla­tion, a high bud­get deficit and pub­lic debt.

On Mon­day, the cen­tral bank cut its bench­mark in­ter­est rate by 150 ba­sis points to 21 per­cent.

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