Ghana’s producer price inflation fell sharply to 10.2% in May 2025, down from 18.5% in April, according to the Ghana Statistical Service. This marks the fourth consecutive monthly drop and the lowest rate since November 2023, providing a potential boost for businesses grappling with high production costs.
The decline was largely driven by lower prices in the industrial sector. Inflation in the Mining and Quarrying sector dropped from 24.3% to 13.7%, while the Manufacturing sector—which carries the heaviest weight on the index—saw inflation fall from 19.6% to 10.1%. Together, these sectors account for 78.7% of the Producer Price Index (PPI).
On a monthly basis, overall producer prices fell by 4.2%, with the Manufacturing and Mining sectors recording declines of 5.3% and 4.8%, respectively. However, Electricity and Gas prices continued to climb, registering a 4.6% monthly increase—a persistent concern for industries reliant on stable energy inputs.
Analysts say the consistent drop in producer inflation could signal a turning point in Ghana’s inflation trends, especially if global conditions remain supportive. Still, structural energy challenges and international commodity price fluctuations may pose future risks.
Businesses are expected to reassess their pricing strategies amid the more stable cost environment, though tightened profit margins could follow as firms adjust to lower selling prices in competitive markets.
Also Read: Ghana’s Inflation Jumps to 21.5% Amid Rising Food Prices After Five-Month Decline
