Price trends across Ghana’s key production sectors diverged in February, with mining and quarrying strengthening while manufacturing and construction continued to weaken, according to data from the Ghana Statistical Service (GSS).
Inflation in the mining and quarrying sector, which carries the largest weight in the Producer Price Index, rose to 4.1% year-on-year in February from 3.7% in January, reflecting increased prices in extractive activities. The sector accounted for a significant share of overall producer inflation, underscoring its influence on Ghana’s industrial price dynamics.
By contrast, manufacturing prices declined further, with year-on-year inflation falling to -2.9% from -2.3% a month earlier. The sustained contraction indicates that producers are receiving lower prices for manufactured goods, pointing to weak demand conditions or cost adjustments within the sector.
Construction activity also slowed, with inflation easing sharply to 0.4% in February from 1.1% in January. The decline suggests moderating cost pressures in building and infrastructure-related activities, though it also reflects subdued momentum in the sector.
On a month-on-month basis, mining inflation decelerated to 2.4% from 7.0% in January, indicating a slowdown in short-term price increases despite the annual gains. Manufacturing, however, recorded a modest rebound in monthly terms, rising by 0.6% after a slight contraction in January, while construction edged up by 0.3%.
The data highlights a widening gap between the extractive industries and its broader industrial base, with mining remaining resilient while manufacturing and construction struggle to sustain price growth.
The divergence tells that there are structural imbalances in the production sectors. Stronger mining prices continue to support overall industrial performance and export earnings, but persistent weakness in manufacturing points to fragile domestic demand and limited industrial expansion. The slowdown in construction suggests cautious investment activity, which could weigh on job creation and infrastructure growth if sustained.
