The Ghana Statistical Service (GSS) is encouraging the government to lock in macroeconomic stability and introduce smart incentives that boost production and demand, particularly in key sectors such as mining and manufacturing. The call comes after GSS published the June 2025 Producer Price Index (PPI), which shows a marked slowdown in inflation across Ghana’s industrial, construction, and services sectors.
The statistical agency warned that stabilizing prices alone is not enough. To maintain momentum in output and protect jobs, government action is needed to stimulate sector-level demand and preserve industrial gains. The current inflation trend, while relieving cost pressures, may also reflect underlying demand weakness that risks undermining production.
Producer Inflation Slows Sharply in June
The June 2025 PPI recorded a year-on-year inflation rate of 5.9%, down from 10.1% in May. On a month-on-month basis, producer prices declined by 1.4%, signaling softening across key areas of the economy.
In the industry and construction category, which includes mining, manufacturing, electricity, and waste management, annual inflation fell to 6.8% from 10.1%, with a monthly drop of 1.6%. The construction sector followed closely with 6.0% year-on-year inflation and a 0.4% monthly decline. The services sector posted the lowest annual inflation of 0.7%, with prices falling by 0.3% month-on-month.
Mining and Manufacturing Face Price Pressure
Two of Ghana’s largest industrial pillars, mining and quarrying, and manufacturing, experienced significant slowdowns in price growth. Mining inflation dropped from 13.7% to 6.5%, with a 2.0% decline month-on-month. Manufacturing inflation decreased from 9.8% to 7.6% year-on-year, with a 0.9% month-on-month fall.
Despite these declines, the GSS underscored the continued importance of these sectors, which collectively account for close to 80% of industrial output (excluding construction). While slowing inflation can ease operational costs, it may also suggest weak market demand, thinner margins, and potential production cutbacks if unaddressed.
Some sub-sectors, such as motor vehicle and trailer manufacturing (35.8%) and leather products (32.4%), recorded strong inflation, pointing to price pressures or demand resilience. Others, including refined petroleum and crude oil extraction, saw negative inflation rates, likely driven by global price trends and domestic constraints.
Mixed Picture in Services and Construction
In the construction sector, building construction posted deflation of -6.7% year-on-year, while civil engineering and specialised construction showed elevated inflation at 11.5% and 17.5% respectively, signaling uneven activity across the sub-sector.
In services, accommodation and food services recorded -2.7% inflation, while transport and storage posted a notable -7.0%, underscoring persistent fragility in some post-COVID demand segments.
Call for Smart Policy Response
The GSS report suggests that this period of declining producer inflation should be seen as both a window of opportunity and a warning sign. While inflation moderation may help stabilize operations, it could also signal slackening demand and investment hesitancy.
In its official commentary, the GSS stated:
“For government, lock in stability, boost production, and support key sectors like mining and manufacturing with smart incentives to drive demand, protect jobs, and keep the momentum strong.”
With Ghana still navigating post-inflation shocks and currency headwinds, such smart incentives could be key to spurring inclusive, job-rich growth through the second half of 2025.
