Ghana’s Producer Price Inflation (PPI) dropped to 10.2% in May 2025, down sharply from 18.5% in April. The 8.3 percentage point decline marks the lowest PPI rate since November 2023, according to data from the Ghana Statistical Service (GSS).
The PPI index, which tracks price changes received by domestic producers, fell from 273.9 in April to 262.4 in May, equivalent to a 4.2% month-on-month decline. The data points to easing price pressures across key production sectors, driven largely by disinflation in mining and manufacturing.
Mining and Manufacturing Drive Decline
Mining and Quarrying, along with Manufacturing, were the main contributors to the PPI decline, accounting for nearly 79% of the overall disinflation.
Inflation in the Mining and Quarrying sector dropped to 13.7% in May from 24.3% in April, amid weaker global commodity prices. Manufacturing inflation also slowed, falling to 10.1% from 19.6%. These two sectors form the backbone of Ghana’s producer base and significantly influence broader inflation trends.
Within manufacturing, sub-sectors such as petroleum refining (-11.2%), computer and electronics (-0.3%), and machinery repair (0.0%) showed signs of stagnation or deflation, while motor vehicle production (35.8%) and leather goods (32.5%) continued to post high inflation rates.
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Sector-Level Inflation Shows Mixed Patterns
Beyond the industrial core, other sectors reported varied inflation trends. Electricity and gas saw a month-on-month rise in inflation, moving from -0.4% in April to 4.6% in May, likely linked to higher tariffs or seasonal demand.
Transport and storage registered the steepest decline, with inflation falling by 13.5%, followed by a 9.2% drop in accommodation and food services. Both movements suggest easing operational costs in logistics and hospitality.
Construction sector data revealed uneven activity. Specialized construction posted inflation of 17.7%, civil engineering stood at 11.9%, while building construction recorded deflation of 3.2%.
Business and Policy Outlook
The sharp drop in producer inflation presents an opportunity for businesses to reassess cost structures, optimize supply chains, and revive paused investments.
The GSS has urged the government to strengthen industrial and trade policy using sub-sector data and to fast-track initiatives like the Gold Board and the Agriculture for Transformation Agenda, both aimed at reducing import dependency and boosting domestic production.
Moderating Prices Could Support Households
With input costs declining, consumer inflation may ease in the near term, offering potential relief to households. The GSS has advised consumers to avoid stockpiling and to report any unfair price increases, noting that the current environment supports greater price predictability.
The overall outlook suggests improved conditions for planning and investment, though the pace of recovery will depend on fiscal policy, business response, and continued monitoring of global market shifts.
