- Producer Inflation Dropped Sharply
Year-on-year producer inflation fell to 10.2% in May 2025, down from 18.5% in April, an 8.3 percentage point drop, signaling strong disinflation. - Lowest Inflation Since Late 2023
The 10.2% PPI is the lowest recorded since November 2023, showing steady easing in production-related cost pressures. - Month-on-Month Prices Fell by 4.2%
Producers earned 4.2% less on average in May than in April, indicating month-on-month producer deflation. - Mining and Manufacturing Drove the Decline
These two sectors accounted for nearly 79% of the fall in inflation, highlighting their outsize impact on Ghana’s producer price trends. - Transport and Storage Hit Hardest
The Transport and Storage sector recorded a -13.5% MoM decline, reflecting sharp reductions in logistics and fuel-linked activities. - Manufacturing Sector Deflation
The Manufacturing sector saw a -5.3% monthly decline in prices received by producers, crucial for food, beverages, and industrial goods. - Electricity and Gas Prices Rose
Unlike most sectors, Electricity and Gas saw a +4.6% monthly rise, contributing slightly to overall inflation. - Construction Sector Softens
Producer prices in the Construction sector dropped from 13.9% to 7.4% YoY, reflecting lower material or demand costs. - Consumers May Benefit Soon
If producers pass on lower input costs, consumer inflation could ease in the coming months, especially in food and essential goods. - GSS Urges Strategic Action
The report calls on businesses to review prices, government to fast-track industrial policies, and consumers to avoid panic buying in response to the improving inflation outlook.
So What?
According to the Ghana Statistical Service, the consistent decline in producer inflation presents a potential window for economic stabilization. As input costs ease across major sectors, the possibility exists for reduced consumer inflation, increased investment activity, and improved competitiveness, provided stakeholders act decisively on the trends reflected in the data.
