The cost of producing goods and providing services in Ghana increased significantly in May 2026, according to new data from the Ghana Statistical Service. While consumers have recently experienced some relief from slowing inflation, businesses are facing rising costs behind the scenes.
The latest Producer Price Index (PPI), released on June 17 by Government Statistician Dr Alhassan Iddrisu, showed that producer inflation rose to 5.8 percent in May, up from 2.7 percent in April. Producer inflation measures changes in the prices businesses receive for the goods and services they produce before they reach consumers.
The biggest increase came from the industry sector, particularly mining and quarrying. Inflation in the sector rose from 2.2 percent to 5.1 percent. Mining and quarrying, which has the largest influence on the index, recorded inflation of 11.0 percent, almost double the 5.6 percent recorded in April. The extraction of crude oil and natural gas recorded the highest increase in the industry sector at 18.8 percent.
The construction sector also experienced higher costs. Producer inflation increased from 0.9 percent in April to 4.3 percent in May. The construction of buildings recorded inflation of 5.4 percent, while utility projects such as water and energy infrastructure saw costs rise by 15.6 percent.
In the services sector, prices rebounded after falling in April. Inflation moved from -1.3 percent to 1.8 percent. The sharpest increase came from motion picture, television and music production activities, which recorded an inflation rate of 87.9 percent. Land transport services also became more expensive, with inflation reaching 23.8 percent, while air transport rose to 10.3 percent.
However, there was some positive news. Compared with April, overall producer prices actually fell by 1.4 percent in May. Manufacturing prices, in particular, dropped by 4.2 percent over the month. This means that although production costs remain higher than they were a year ago, the immediate pace of increases slowed in May.
Prices in shops may not change immediately, but they could rise later if businesses begin passing on their higher production costs. Transport and construction may also become more expensive over time, affecting fares and building projects. The small drop in prices from April to May offers some short-term relief, indicating that businesses may delay price increases for now. However, if these cost pressures continue, households will likely need to be more careful with spending and look for better value when buying goods and services.
