Mining and quarrying, water supply, and transportation were the biggest drivers of producer inflation in May. This comes as Ghana’s producer inflation rate rose sharply to 5.8 percent from 2.7 percent in April.Africans & Diaspora
According to the Ghana Statistical Service, mining and quarrying recorded the highest year-on-year inflation rate of 11 percent, followed by water supply, sewerage and waste management at 10.2 percent, and transportation and storage at 7.7 percent.
Electricity and gas posted inflation of 6.9 percent.
Construction recorded inflation of 4.3 percent, while accommodation and food services registered 2.9 percent. Manufacturing, one of the economy’s largest productive sectors, recorded a modest 0.7 percent increase.
Despite the rise in annual producer inflation, prices at the factory gate fell by 1.4 percent between April and May, indicating a short-term easing in cost pressures.
Looking ahead, the Service is urging businesses to secure key inputs through forward contracts or bulk purchases to cushion against rising production costs.
It is also calling on government to strengthen inflation monitoring, particularly in the mining, transport and manufacturing sectors, to contain potential price pressures along supply chains.
Producer Price Inflation (PPI) is widely regarded as an early indicator of future consumer price movements, as changes in production costs can eventually be passed on to households through higher retail prices.
The latest figures provide important signals for businesses, consumers and policymakers.
Businesses can use the data to plan for input costs, while policymakers may monitor supply chain developments and emerging price trends to manage potential inflationary pressures in the months ahead.
The May data suggests that while annual cost pressures have strengthened, recent monthly declines in producer prices could offer some relief if sustained, helping to moderate future inflation risks.