The Ghana Statistical Service (GSS) is encouraging businesses across the country to respond proactively to easing inflationary pressures by reviewing their cost structures and adjusting prices in line with current market realities. This follows the continued decline in the Producer Price Index (PPI), which reflects the prices producers receive for goods and services at the factory gate.
According to the GSS’s latest report for May 2025, year-on-year producer price inflation dropped to 10.2%, down sharply from 18.5% recorded in April. This marks the fourth consecutive month of decline, and the lowest producer inflation rate since November 2023, when it stood at 1.7%.
On a month-on-month basis, producer prices fell by 4.2% between April and May. This indicates that producers received less for their goods and services in May, signalling a reduction in input costs across key sectors such as mining, manufacturing, and transport.
In its official recommendation to businesses, the GSS stated: “Review cost structure and adjust prices to remain competitive as input prices decline.”
The Service also advised companies to resume growth-oriented strategies that may have been paused due to earlier inflationary pressures.
It stated: “Resume paused investments or expansion plans, supported by a more stable pricing environment.”
“Increase sourcing from local suppliers to reduce costs and minimise currency/import risks.”
Improved financing conditions were also highlighted, with GSS encouraging businesses to take advantage of the current environment:
“Engage financial partners to renegotiate or secure better loan terms due to lower input inflation.”
Within the broader production economy, the GSS data revealed sector-specific movements. The Manufacturing sector recorded a 5.3% decline in month-on-month prices, while Mining and Quarrying saw a 4.8% decrease. These two sectors alone accounted for 78.7% of the overall reduction in producer inflation, underscoring their significant influence on Ghana’s industrial cost structure. Meanwhile, Electricity and Gas were the only major categories to record an increase, rising 4.6% over the same period.
With producer inflation consistently declining, businesses have an opportunity to realign their pricing models with more stable input costs. This adjustment can help relieve pressure on consumers while supporting broader efforts to enhance market competitiveness and ensure economic stability.
