Ghana’s Producer Price Inflation (PPI) fell to 3.8% in July 2025, down from 5.8% in June, according to the Ghana Statistical Service (GSS). This marked the sixth straight monthly decline and the lowest rate since November 2023.
Month-on-month, producer prices for goods and services rose by 1.6% from June to July.
Key Sector Drivers
The drop was fueled by major sectors like mining & quarrying (43.7% weight) and manufacturing (35% weight), which together make up nearly 80% of the PPI index:
Mining & Quarrying: Fell to 4.6% from 6.5%.
Manufacturing: Dropped sharply to 3.6% from 7.2%.
Other sectors showed mixed results, with transport costs deepening to -8.1% from -7.0%, while hotels and restaurants held steady at 2.6%.
Update: Trends into Early 2026
PPI moderation continued into January 2026, though with emerging pressures. Manufacturing inflation turned negative at -2.2% (down 2.3 points from December 2025’s 0.1%). Transport & storage hit -6.9% (from -3.7%), and accommodation/food services deepened to -5.4% (from -3.2%). Information & communication eased slightly to 1.4% (from 1.7%).
Offsetting this, electricity & gas surged to 14.8% (from 6.1%), and water supply/sewerage/waste management rose to 9.9% (from 2.3%). Overall, a 3.3% month-on-month increase in January signals short-term cost pressures ahead.
Implications for Businesses, Government, and Consumers
Falling input costs offer opportunities but squeeze margins, the GSS noted. Businesses should rethink pricing, renegotiate contracts, and innovate. Government is urged to lock in stability, boost production, and incentivize mining/manufacturing to protect jobs and demand. Consumers: Watch retail prices—”If producer costs fall, so should they. Buy smart and question markups.”
Story by: Mercy Addai Turkson#ahotorfmonline.com