Prices Cooling? Tell That to the Construction Sector—Costs Are Still Skyrocketing

So here’s the story—Producer Price Inflation (PPI) for September 2024 has cooled down a bit, dipping from 33.2% in August to 30.4% in September. You’d think, “Hey, that’s good news!” right? But hold on, things are not as simple as they seem! While PPI is down, the Consumer Price Index (CPI)—aka the cost of everything you’re buying—is still going up. It’s like the prices on one side are taking a breather, but the other side keeps sprinting!

Now, let’s talk construction. This is where things are getting a bit sticky. While some sectors are showing signs of calming down, construction costs are having none of that. The inflation in the construction sector actually went up from 22.7% to 23.2%, and this means if you’re planning to build your house, fix that road, or start any big infrastructure project—brace yourself because it’s going to be costly. This is largely thanks to rising raw material prices and the never-ending supply chain issues.

On the industry side (excluding construction), inflation saw a tiny drop from 44.6% to 43.0%. It’s not much, but manufacturers and industrial players are starting to see a bit of relief. It’s like running up a hill and finally reaching a flatter stretch. But they’re not out of the woods yet—high production costs are still weighing on them like a stubborn load on a donkey’s back!

Now, here’s where it gets spicy: the mining and quarrying sector. These guys just got hit with a massive increase in inflation, shooting up from 43.7% to 48.7%. Why? Rising energy and equipment costs, plus those pesky global supply chain disruptions. Basically, it’s getting more expensive to dig stuff out of the ground, which means mining operations are coughing up more money just to keep things going.

But it’s not all bad news! Over in the services sector, things are cooling off a little—inflation dropped from 14.0% to 12.3%. That’s some good news for businesses like hotels, restaurants, and other service-related industries. While the inflation rate is still high, these folks are starting to catch a bit of a break.

However, over in the transport sector, it’s still a bit of a rollercoaster. Inflation crept up from 30.4% to 30.9%, thanks to rising fuel prices and logistics challenges. So, whether you’re shipping goods across the country or just hopping into a trotro, you’re still feeling that pinch at the pump.

On the bright side, water, sewerage, and waste management services seem to be taking it easy. Inflation in this sector dropped slightly from 4.2% to 4.0%, making it the lowest inflation rate across all sectors. It’s good for now, but let’s not get too comfortable—there’s always a chance those costs could spike again.

So, where does this leave us? While inflation may be dipping here and there, especially for some sectors, the construction and mining industries are still sweating under rising costs. And with producer inflation still up 30.4% year-on-year compared to September 2023, it’s clear that Ghana’s economic situation remains complicated. Whether you’re a business owner or just trying to get by, it’s a mixed bag right now. Hang tight—it looks like we’re still in for a bumpy ride!

Source:thehighstreetjournal.com