Ghana’s Producer Price Inflation (PPI) Drops to 3.8%

Ghana’s Producer Price Inflation (PPI) dropped to 3.8% in July 2025, down from 5.8% in June, according to the latest data from the Ghana Statistical Service (GSS). This marks the sixth consecutive monthly decline and the lowest rate since November 2023.

The GSS figures also show that prices producers received for goods and services rose by 1.6% month-on-month between June and July.

Key Sector Drivers

The decline was driven largely by the mining and quarrying and manufacturing sectors, which together account for nearly 80% of the PPI.

• Mining & Quarrying (43.7% weight): Inflation fell to 4.6% in July from 6.5% in June.
• Manufacturing (35% weight): Inflation dropped sharply to 3.6%, down from 7.2% in June.

Other sectors showed mixed trends, with transport costs falling further to -8.1% in July, from -7.0% in June. Hotels and restaurants remained unchanged at 2.6%.

Implications for Businesses, Government, and Consumers

The GSS highlighted that while falling input costs create opportunities, they also compress margins. The GSS urged businesses to rethink pricing strategies, renegotiate contracts, and innovate. For the government, the advice was to lock in macroeconomic stability and stimulate production to sustain growth. Consumers were encouraged to monitor retail prices closely and “buy smart.”

With producer inflation on a sustained downward trajectory, analysts say the trend could ease cost pressures in the economy, but much will depend on how effectively businesses and policymakers translate these gains into lower consumer prices and stronger industrial performance.

Source: African Publicity