Producer Price Inflation (PPI) for November 2024 fell sharply to -1.9% month-on-month (MoM), a significant drop from the 3.0% recorded in October 2024.
This decline, reported by the Ghana Statistical Service (GSS), was largely driven by contractions in critical sectors such as Mining and Quarrying, Industry, and Utilities, signaling a moderation in production costs.
The Mining and Quarrying sector led the decline, recording a steep fall of -6.1%, reflecting reduced activity in one of Ghana’s major economic drivers.
The broader Industry sector recorded a month-on-month inflation rate of -2.0%. This reflects a slowdown in price increases for manufacturing and industrial activities. Utilities showed marginal declines, with Electricity and Gas and Water Supply, Sewerage, and Waste Management recording -0.01% and -0.02%, respectively.
These trends indicate a moderation in production costs, which could offer some relief to producers and businesses. The sharp drop in producer inflation suggests that local input costs are easing, providing a positive outlook for businesses as they look to stabilize operations.
Meanwhile, though month-on-month producer inflation has seen a significant reduction, some of the year-on-year figures remain a concern as they are still well above the national average of 26.9%.
Mining and Quarrying recorded the highest inflation rate at 41.9%, followed by Accommodation and Food Services at 32.5%, Transportation and Storage at 31.7%, and Construction at 31.1%. In stark contrast, Water Supply, Sewerage, and Waste Management recorded the lowest year-on-year inflation rate of 5.0% in November 2024.
While the month-on-month reduction is a welcome development, the persistently high year-on-year figures in these key sectors highlight ongoing challenges.
