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.