The Ghana Statistical Service (GSS) has called on government to “lock in stability, boost production, and support key sectors like mining and manufacturing with smart incentives” after new data showed producer price inflation dropped to its lowest in nearly two years.
According to the July 2025 Producer Price Index (PPI) report, year-on-year producer inflation slowed to 3.8%, down from 5.8% in June, marking the sixth consecutive month of decline and the lowest rate since November 2023
“This means that on average, the ex-factory price of goods and services increased by just 3.8% between July 2024 and July 2025,” the GSS explained. The report also highlighted a 1.6% month-on-month increase from June to July, suggesting short-term price pressures persist even as annual inflation cools.
The GSS cautioned that while falling costs could translate into relief for consumers, much depends on whether producers and retailers pass savings down the value chain. “If these savings reach consumers, we could see real relief,” the report noted.
Beyond the numbers, the Statistical Service issued a policy advisory to both businesses and government. It urged firms to innovate rather than rely solely on price cuts, warning that falling costs could also mean tighter margins.
For policymakers, the GSS advised to “support key sectors like mining and manufacturing with smart incentives to drive demand, protect jobs, and keep the momentum strong.”
Economists say the easing PPI signals reduced input cost pressures for producers, which could further anchor consumer inflation in the coming months. However, structural challenges including energy costs, limited processing capacity, and weather-related risks remain potential headwinds.
With Ghana’s economy still navigating post-debt exchange adjustments, the GSS’s recommendations highlight the delicate balance between sustaining disinflation gains and stimulating real sector growth.
