Ghana’s producer inflation accelerated sharply in May 2026, driven largely by rising prices in the mining, transport, and construction sectors, while telecommunications, water services, and several construction activities remained relatively stable, according to the latest Producer Price Index (PPI) report released by the Ghana Statistical Service (GSS).
The report showed that producer inflation rose to 5.8 percent in May 2026, up from 2.7 percent in April, representing an increase of 3.1 percentage points.
The surge was largely fueled by strong price increases in mining and quarrying, transportation and storage, and construction-related activities.
Mining and quarrying emerged as the biggest contributor to producer inflation, recording an annual inflation rate of 11.0 percent and contributing 4.8 percentage points to the overall PPI.
The sector carries the largest weight in the PPI basket at 43.7 percent, making its movements highly influential on overall producer prices.
Within the mining sector, the extraction of crude oil and natural gas recorded the highest inflation rate at 18.8 percent in May.
Mining of metal ores also saw inflation increase to 6.5 percent, underscoring continued pricing pressures in Ghana’s extractive industries.
Transportation and storage recorded one of the sharpest turnarounds, posting an annual inflation rate of 7.7 percent in May after registering a deflation rate of 6.6 percent in April.
The subsector’s inflation rate increased by 14.3 percentage points over the period, reflecting rising costs across logistics and transportation services.
Land transport was the major driver within the services segment, recording an inflation rate of 23.8 percent, while air transport registered 10.3 percent. These developments could have implications for supply chain costs and the movement of goods across the economy.
The construction sector also recorded a notable rebound, with annual inflation increasing from 0.9 percent in April to 4.3 percent in May.
Construction of buildings posted the highest inflation rate within the sector at 5.4 percent, while specialised construction activities and civil engineering recorded inflation rates of 4.4 percent and 3.9 percent, respectively.
Meanwhile, several subsectors exhibited relative price stability despite the broader increase in producer prices.
Information and communication remained one of the most stable sectors in the economy, recording an annual inflation of just 0.5 percent in May.
The subsector’s producer price index increased only marginally over the past year, ending at 127.8 in May 2026. Telecommunications inflation remained unchanged during the review period.
Water supply, sewerage, and waste management also maintained stable pricing trends. The sector recorded annual inflation of 10.2 percent, virtually unchanged from the 10.3 percent recorded in April.
The report noted that water collection, treatment, and supply inflation slowed only slightly, while waste collection and disposal activities saw only marginal changes.
Within construction, several specialised activities showed little movement. Other specialised construction activities maintained an inflation rate of 9.1 percent, while building completion and finishing remained unchanged at 3.8 percent between April and May. Civil engineering inflation also remained steady at 3.9 percent.
The report further highlighted the stability of the services sector as a whole, which recorded annual inflation of 1.8 percent and no month-on-month change in May. Information and communication was identified as the most stable services subsector over the review period.
Analysts say the divergence between rapidly rising producer prices in mining and transport and the relative stability in communications and utility-related services reflects varying cost pressures across the economy.
Given the dominant weight of mining and quarrying in the producer price basket, developments in the extractive sector are expected to remain a key determinant of producer inflation trends in the coming months.
