Business
Ghana’s Producer Inflation Falls to 19-Month Low at 5.9% Amid Broad-Based Price Drops
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.
The Ghana Stock Exchange recorded a landmark performance on Wednesday, as its benchmark Composite Index crossed the 14,000 mark for the first time in history.
At the close of the 7,166th trading session on March 4, 2026, the GSE Composite Index rose by 270.78 points to settle at 14,005.32. The Financial Stocks Index also advanced strongly, gaining 309.94 points to close at 8,805.87.
Market capitalisation climbed to GH¢256.75 billion, up from GH¢251.02 billion recorded the previous day, reflecting sustained investor participation across the market.
A total of 3,583,308 shares were traded during the session, with a combined value of GH¢39.82 million. Although trading volume was lower compared to earlier sessions in the week, the total value represented the highest single day turnover recorded so far this week.
Banking Stocks Lead Market Gains
Banking equities accounted for much of the day’s momentum.
GCB Bank PLC posted one of the strongest gains, rising by GH¢4.52 to close at GH¢49.80. The bank recorded 441,752 shares traded, contributing nearly GH¢22 million to the total value of shares exchanged.
Standard Chartered Bank Ghana PLC added GH¢4.72 to close at GH¢51.96, while Ecobank Ghana PLC closed unchanged at GH¢57.00, with 24,534 shares traded.
Other financial stocks also recorded gains. Enterprise Group PLC rose by GH¢0.80 to GH¢9.00, while Ecobank Transnational Inc. gained GH¢0.13 to close at GH¢1.55.
However, Societe Generale Ghana PLC declined by GH¢0.11 to close at GH¢11.40, making it the only actively traded stock to record a loss during the session.
Telecommunications and Energy Counters Advance
Scancom PLC, operators of MTN Ghana, remained the most actively traded stock. The counter rose by GH¢0.02 to close at GH¢5.80, with 1,968,543 shares exchanged, valued at over GH¢11.4 million. The stock’s closing bid and offer prices indicated sustained demand ahead of its upcoming dividend payment.
In the energy and insurance sectors, Ghana Oil Company Limited advanced by GH¢0.52 to GH¢5.77, while SIC Insurance Company PLC gained GH¢0.29 to close at GH¢4.90.
Republic Bank Ghana PLC increased by GH¢0.11 to GH¢2.73, and Atlantic Lithium Ltd rose by GH¢0.12 to GH¢6.52. Benso Palm Plantation PLC edged up marginally by GH¢0.01 to close at GH¢74.01.
Broader Market Performance
Several listed equities recorded no price changes during the session, including AngloGold Ashanti PLC, Guinness Ghana Breweries PLC, TotalEnergies Marketing Ghana PLC, and Unilever Ghana PLC, among others.
Since the beginning of the year, the Composite Index has recorded a cumulative gain of 59.69 percent, while the Financial Stocks Index has returned 89.49 percent. Wednesday’s performance marked the eighth consecutive trading session of gains for the benchmark index, as market observers monitor the 14,500 point level as the next key threshold.
Banks in Ghana wrote off GH¢1.64 billion in bad debts in 2025, representing a sharp 57.1 percent decline compared to the previous year, according to data released by the Bank of Ghana.
Figures from the central bank’s Domestic Money Banks Income Statement show that in 2024, banks made provisions amounting to GH¢3.82 billion for bad loans, depreciation and other related losses. The significant drop in write-offs in 2025 signals a relative easing in credit losses across the industry.
Despite this improvement, asset quality risks within the banking sector remain elevated. The January 2026 Banking Developments Report indicates that the industry’s Non-Performing Loans ratio declined to 18.9 percent in December 2025, down from 21.8 percent recorded in December 2024.
When adjusted to exclude fully provisioned loan loss categories, the NPL ratio fell more sharply from 8.5 percent to 5.0 percent over the same period, reflecting stronger recovery and provisioning efforts by banks.
However, the total stock of non-performing loans increased marginally by 0.8 percent to GH¢21.0 billion in December 2025. This contrasts with the much higher growth rate of 31.4 percent recorded in December 2024, suggesting that while bad loans are still rising in absolute terms, the pace of growth has slowed considerably.
A breakdown of the NPL figures shows that the private sector continues to account for the overwhelming share of distressed loans. Its proportion of total non-performing loans rose to 97.5 percent in December 2025, up from 96.2 percent a year earlier. In contrast, the public sector’s share declined to 2.5 percent from 3.8 percent over the same period.
The central bank noted that the overall decline in the NPL ratio reflects broad-based improvements in asset quality across most sectors of the economy. However, two sectors recorded worsening loan performance. The construction sector saw its NPL ratio rise from 29.8 percent to 30.7 percent, while the agriculture, forestry and fishing sector experienced a more significant increase from 38.0 percent to 46.3 percent.
All other sectors reported improvements in asset quality during the review period, pointing to gradual stabilization in credit conditions within the banking industry.
Ghana has recorded a decline in its global mining investment standing, slipping seven places in the latest Global Mining Investment Attractiveness Index released by the Fraser Institute.
The country fell from 46th position out of 82 jurisdictions in 2024 to 53rd out of 68 jurisdictions assessed in 2025. Although Ghana’s overall score saw only a marginal decrease, the drop in ranking reflects stronger performance by competing mining destinations worldwide.
Slight Score Decline, Sharper Ranking Impact
In 2024, Ghana achieved a score of 56.98 percent. This declined modestly to 55.21 percent in 2025. Analysts note that the sharper fall in ranking was largely driven by improvements recorded by other countries rather than a significant deterioration in Ghana’s performance.
The Fraser Institute’s Annual Mining Survey evaluates jurisdictions based on mineral potential and policy-related factors that influence exploration investment decisions, including taxation frameworks, regulatory stability, and government policy predictability.
Within Africa, Ghana ranked eighth out of 16 countries surveyed, placing slightly ahead of South Africa, with an overall continental score of approximately 55 percent.
Survey Methodology and Industry Participation
The 2025 survey was conducted electronically between August 5 and November 26, targeting about 2,304 mining industry professionals globally. Senior executives formed a significant portion of respondents, with more than 46 percent serving as company presidents or vice-presidents, while over 25 percent were managers or senior managers.
Participating firms collectively reported exploration expenditures totaling about US$4.2 billion in 2025.
Jurisdictions are ranked according to how public policies either encourage or discourage mining investment. The Investment Attractiveness Index combines two key measures: the Best Practices Mineral Potential Index, which assesses geological prospects, and the Policy Perception Index, which evaluates investor confidence in government policies.
The number of jurisdictions assessed annually varies depending on commodity price trends and activity levels within the global mining sector. Previous surveys evaluated 82 jurisdictions in 2023, 86 in 2022, and 84 in 2021.
Policy Debate Shapes Investor Sentiment
The report comes at a time when sections of Ghana’s mining industry have raised concerns about proposed government reforms, including potential tax and regulatory reviews affecting the sector.
Some mining companies have indicated that changes to existing policies could influence profitability and employment levels if implemented.
Government officials, however, argue that the reforms are intended to ensure the country derives greater value from its mineral resources while maintaining a balance between attracting investment and safeguarding national economic interests.
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