Ghanaians are being urged to pay closer attention to retail prices and question unjustified markups, especially as new data shows a significant drop in the cost of producing goods and services. The advice to consumers comes at a time when inflationary pressure at the factory gate has eased, but this relief has yet to be felt in most shop aisles and market stalls.
“For households and consumers, watch prices closely. If producer costs are falling, retail prices should too, all else remaining constant. Buy smart, question markups, and support brands that pass savings on,” GSS recommended.
This guidance reflects growing concern that the economic gains recorded at the production level may not be filtering down to the average Ghanaian, who continues to grapple with elevated living costs.
According to the June 2025 Producer Price Index report, overall producer inflation slowed sharply to 5.9% year-on-year from 10.1% in May, while prices fell by 1.4% on a monthly basis. Key sectors such as manufacturing, mining, and utilities all recorded easing inflation, suggesting that companies are paying less for raw materials, energy, and production inputs.
But translating lower input costs into lower prices on the shelves is not always straightforward.
Many producers and retailers operate with delayed cost structures, meaning the goods being sold now may have been produced or stocked when prices were still high. Others face lingering pressures such as high utility tariffs, logistics challenges, or debt-servicing burdens, which complicate immediate price adjustments. In some cases, businesses may be attempting to rebuild margins eroded during earlier periods of inflation, choosing to maintain prices for longer even as input costs ease.
Despite these realities, analysts caution that pricing must remain fair and transparent. If costs continue to decline, but retail prices remain stubbornly high, it risks undermining public trust and weakening consumer purchasing power just as the economy shows signs of cooling.
The manufacturing sector, which recorded a year-on-year inflation rate of 7.6% in June (down from 9.8% in May), showed particular signs of easing. Mining and quarrying also saw inflation drop from 13.7% to 6.5%. But whether these changes reach the consumer depends heavily on pricing behavior along the supply chain.
For now, households are being encouraged to stay alert: compare prices, reward brands that adjust fairly, and question price increases, or price inertia, that seem disconnected from current cost trends.
