Ghana’s Producer Price Inflation Plummets to 3.8% in July 2025, Marking Six-Month Decline
Ghana’s Producer Price Inflation (PPI) dropped to 3.8% in July 2025, down from 5.8% in June, marking the sixth consecutive monthly decline and the lowest rate since November 2023, according to the latest data from the Ghana Statistical Service (GSS).
The figures show that prices producers received for goods and services rose by 1.6% month-on-month between June and July.
Key Sector Drivers
The decline was driven largely by the mining and quarrying and manufacturing sectors, which together account for nearly 80% of the PPI.
• Mining & Quarrying (43.7% weight): Inflation fell to 4.6% in July from 6.5% in June.
• Manufacturing (35% weight): Inflation dropped sharply to 3.6%, down from 7.2% in June.
Other sectors showed mixed trends with transport costs falling further to -8.1% in July, from -7.0% in June. Hotels and restaurants remained unchanged at 2.6%.
Implications for Businesses, Government and Consumers
The GSS highlighted that while falling input costs create opportunities, they also compress margins. Businesses were urged to rethink pricing strategies, renegotiate contracts, and innovate rather than relying solely on price adjustments.
For government, the advice was to lock in macroeconomic stability, stimulate production, and support key sectors—particularly mining and manufacturing—through targeted incentives to sustain growth, protect jobs, and strengthen demand.
Consumers, meanwhile, were encouraged to monitor retail prices closely.
“If producer costs are falling, retail prices should too, all else being equal,” the GSS stated. “Buy smart, question markups, and support brands that pass savings on.”
With producer inflation on a sustained downward trajectory, analysts say the trend could ease cost pressures in the economy. However, much will depend on how effectively businesses and policymakers translate these gains into lower consumer prices and stronger industrial performance.
