Ghana’s producer price inflation rose to 4.4% in August 2026 from 4.0% in July, driven largely by developments in the mining sector as price pressures across construction and services eased.
Data from the Ghana Statistical Service (GSS) shows that producer prices also increased at a faster pace between July and August, with month-on-month inflation rising to 2.5% from 2.0%. The movement points to renewed cost pressures at the production stage, although the increase was concentrated in particular parts of the economy rather than spread evenly across all sectors.
Industry, excluding construction, recorded the strongest year-on-year producer inflation at 6.3%, up from 5.6% in July. Construction, on the other hand, eased to 4.5%, while services recorded the lowest sectoral rate at 1.8%.
GSS described the movements as “mixed price movements across sectors,” reflecting the different directions of producer prices in the three broad areas of the economy.
Mining and quarrying was the main source of the increase in industry. Producer inflation in the sub-sector rose from 3.5% to 4.9%, with its substantial share of the PPI giving changes in mining a strong influence on the headline figure.
The GSS states that “Mining & Quarrying drove the year-on-year rise to 4.4%; month-on-month, prices rose 2.5% led by the same sector.”
Crude oil and natural gas extraction was the biggest contributor within mining, recording a 12.9% increase in producer prices. Mining support services and other mining activities also recorded increases, while metal ore mining was the only activity within the sub-sector to record a decline.
The importance of mining to the overall PPI goes beyond its individual inflation rate. Mining carries the largest weight in the index, meaning price movements in the sector can have a sizeable effect on the national producer inflation figure. The August increase therefore reflects strong price movement in a sector with considerable influence on the overall index.
Manufacturing, which also carries a significant weight in the PPI, moved in the opposite direction, with producer inflation easing slightly. However, conditions within the sector remained uneven.
Leather and related products recorded the strongest increase among manufacturing activities, while fabricated metal products, furniture, machinery and wood products also recorded relatively high producer price increases. Some other manufacturing activities recorded little or no growth, while other non-metallic mineral products registered a decline.
Electricity and gas continued to record one of the highest producer inflation rates among the sub-sectors, although its rate eased from the previous month. Water supply, sewerage and waste management also remained elevated.
This suggests that utility-related costs continue to present a source of pressure for producers even as price growth moderates in some other areas of the economy. GSS noted that electricity and gas remained the “fastest-rising activity,” despite the easing in its annual rate.
Construction also recorded a moderation in annual producer inflation, but the underlying activities did not move uniformly. Building construction remained the main source of price pressure, recording inflation of 6.9%, compared with lower increases in specialised construction and civil engineering.
The pattern indicates that construction costs are being driven more strongly by building-related activity than by civil engineering. Although the overall sector eased, producers involved in building construction continued to face comparatively stronger price pressures.
Services recorded the sharpest moderation among the three broad sectors, with producer inflation falling to 1.8% from 2.5% in July. The sector still contained some activities with significant price increases, particularly motion picture, video and television production, sound recording and music publishing, as well as land transportation.
The sectoral movements carry different implications for businesses and policymakers. The stronger increase in mining prices means firms operating in and around the sector could face higher production and operating costs, particularly in activities linked to crude oil and natural gas. Businesses exposed to these costs may need tighter cost controls and more careful pricing decisions to protect margins without weakening demand.
The continued pressure in electricity and gas also has implications beyond utilities themselves. Higher producer prices in energy-related activities can raise operating costs for manufacturers, construction firms and other businesses that rely heavily on energy. This makes productivity and efficient use of key inputs increasingly important for firms seeking to contain costs.
In construction, the stronger price increase in building activity suggests that developers and contractors could continue to face cost pressures even though inflation for the sector as a whole has eased. Businesses may therefore need to pay closer attention to input costs and project budgets, particularly for building-related projects.
The moderation in services provides some relief for businesses operating in that sector, but the wide differences among individual service activities show that cost conditions remain uneven. Firms in transportation and other activities recording higher producer inflation may still face significant cost pressures despite the lower sector-wide rate.
For policymakers, the figures point to the need for a more targeted response to producer price pressures. The GSS recommends that policymakers “prioritise sectors experiencing significant producer price increases and assess the underlying drivers of those pressures.” This is particularly relevant to mining and utilities, where price movements are contributing strongly to the overall producer inflation rate.
The data also gives businesses an early indication of where cost pressures are emerging. GSS says producers should “improve operational efficiency, strengthen cost controls and review pricing carefully” while securing critical inputs and diversifying suppliers where necessary.
