Ghana’s producer inflation eased slightly in February, driven by continued weakness in manufacturing even as mining sector gains provided partial support, according to data from the Ghana Statistical Service.
Year-on-year producer price inflation stood at 1.4% in February, down from 1.6% in January and sharply lower than the 27.6% recorded a year earlier. The data reflects the rate at which prices received by domestic producers change over time. On a monthly basis, however, producer prices rose by 1.3% in February, signaling renewed short-term cost pressures across the economy.
The mining and quarrying sector, which carries the largest weight in the index, saw inflation accelerate to 4.1% from 3.7% in January, supporting overall price growth. By contrast, manufacturing inflation remained in negative territory, declining further to -2.9% from -2.3%, indicating falling factory gate prices for a significant portion of industrial output.
Other sectors showed mixed trends. Transport and storage prices continued to decline, with inflation dropping to -8.6%, while electricity and gas remained elevated at 14.3%. Services inflation also softened in parts of the economy, including accommodation and food services. The data suggests that while upstream price pressures have moderated significantly over the past year, sectoral divergences persist, reflecting uneven recovery across key industries.
The slowdown in annual producer inflation points to easing cost pressures for businesses compared to a year ago, which could help stabilize consumer prices over time. However, the pickup in month-on-month inflation signals that short-term price momentum remains, raising the risk of renewed inflationary pressures. The continued contraction in manufacturing prices may support input costs for firms but also points to weak industrial demand, while strength in mining highlights Ghana’s ongoing reliance on extractive sectors to drive price movements and export earnings.
The GSS indicates that the combination of moderate annual inflation and rising monthly pressures points to the need for close monitoring of price trends, particularly in sectors critical to production and logistics.
