Ghana’s Producer Price Inflation (PPI) has plunged to 5.9% in June 2025—the lowest year-on-year rate recorded since November 2023, according to the Ghana Statistical Service (GSS).

This marks a significant 4.2 percentage point decline from the 10.1% recorded in May and a sharp 19.7-point drop from the 25.6% registered in June 2024. It is also the fifth consecutive month of declining producer inflation, indicating consistent easing across several major production sectors.

On a monthly basis, the PPI saw a deflation of 1.4%, meaning producers, on average, received lower prices for their goods and services in June compared to May.

Releasing the data in Accra on Wednesday, July 16, Government Statistician Dr. Alhassan Iddrisu attributed the decline to ongoing price reductions in key sectors such as mining, manufacturing, transport, and hospitality.

“Our data confirms a steady fall in producer inflation, driven largely by lower input costs in high-weight sectors like mining and manufacturing,” Dr. Iddrisu said.

The Mining and Quarrying sector—which holds the largest weight in the PPI basket at 43.7%—saw inflation fall sharply from 13.7% in May to 6.5% in June. The Manufacturing sector, which accounts for 35% of the index, also dropped from 9.8% to 7.6%.

Other sectors saw even more dramatic shifts. Inflation in the transport sector dropped deeper into negative territory, from -4.8% to -7.0%, while the hotel and restaurant category experienced a notable turnaround—from a 6.5% rise in May to a 2.7% fall in June, a swing of 9.2 percentage points.

The Services sector recorded a modest year-on-year inflation of 0.7%, while construction posted a 6.0% increase.

Within subsectors, mining support services topped the inflation chart at 56.1%, while crude oil and natural gas extraction experienced a steep deflation of -25.1%. In manufacturing, vehicle production led with 35.8% inflation, followed by leather goods at 32.4%. Conversely, petroleum refining saw a 10.6% drop in prices.

Dr. Iddrisu advised businesses to adjust strategically. “Falling input costs can create room for innovation, but companies must be cautious about shrinking profit margins,” he said.

He urged government to focus on sustaining macroeconomic stability, incentivizing production, and supporting key sectors to maintain the downward inflation trend and safeguard employment.

The GSS also encouraged consumers to be discerning in their spending. “Shop smart, question price hikes, and reward brands that reflect cost reductions,” the report advised.

If producer cost trends persist, consumers may soon experience a welcome reduction in retail prices—provided businesses pass on the savings.

The PPI report tracks changes in prices received by producers across key economic sectors, excluding consumer taxes and intermediary costs. The current index is based on data from March 2020 to February 2021.

Ghana’s gold reserves have soared to 32.99 tonnes as of June 2025, marking a significant milestone in the Bank of Ghana’s ongoing strategy to strengthen the country’s financial resilience and diversify its foreign reserves.

Fresh data from the central bank reveals a steady month-on-month increase — up from 31.37 tonnes in April and 32.16 tonnes in May. This growth represents a dramatic leap from the 8.78 tonnes recorded in May 2023, nearly quadrupling in just over a year.

The upward trend underscores the Bank of Ghana’s commitment to increasing its gold holdings as part of a broader move to reduce dependency on traditional foreign currencies, especially the U.S. dollar.

As the continent’s top gold producer, Ghana has also intensified efforts to formalise its small-scale mining sector. This initiative aims to retain more domestically mined gold for national use, supporting long-term economic development.

Ghana’s gold accumulation strategy aligns with a global trend among central banks, many of which are turning to gold as a hedge against currency volatility and rising geopolitical uncertainties.

The African Development Bank (AfDB) has approved a $474.6 million loan to South Africa to help upgrade its transport and energy infrastructure. This marks the second major infrastructure loan for the country in recent weeks, following a $1.5 billion agreement with the World Bank in June.

The AfDB’s financial support is aimed at enhancing energy efficiency and implementing critical rail sector reforms, the bank said in a statement on Tuesday.

South Africa, Africa’s most industrialized economy, has been grappling with persistent power outages, deteriorating railway networks, and heavily congested ports for over a decade. These issues have severely impacted key sectors such as mining and automobile manufacturing, stalling economic growth.

The AfDB loan is part of a broader international financing package to support South Africa’s infrastructure revival. Additional contributions include €500 million ($590.75 million) from German development bank KfW, up to $200 million from the Japan International Cooperation Agency (JICA), and $150 million from the OPEC Fund for International Development.

The combined effort signals a coordinated international commitment to revitalizing South Africa’s critical infrastructure and supporting long-term economic stability.