Ghana’s Producer Price Inflation Drops 90bps to 26.1% in December 2024
The Ghana Statistical Service (GSS) has reported a decline in the Producer Price Inflation (PPI) rate for December 2024, which fell to 26.1%, down from 27.0% recorded in November.
This represents a 0.9 percentage point decrease in year-on-year producer inflation. On a month-on-month basis, producer prices experienced a contraction of -1.4% between November and December.
Sectoral Breakdown
Producer inflation in the industrial sector, excluding construction, saw a decline from 41.4% in November to 40.2% in December. Meanwhile, the construction sector experienced a reduction in inflation to 29.6%, and the services sector recorded a notable drop to 6.8%.
Among the key activities, Mining and quarrying posted the highest inflation rate at 42.8%. Accommodation and food service activities followed with 30.5% and Construction ranked third at 29.6%.
In contrast, water supply, sewerage, and waste management registered the lowest inflation rate, at 5.0%.
Implications of the PPI
The PPI measures the average change over time in the prices producers receive for their goods and services, providing a critical indicator of inflationary trends in the production sector.
The continued decline in producer inflation aligns with broader efforts to stabilize prices and may signal easing cost pressures across key economic sectors.
The data suggests a moderation in cost pressures within Ghana’s production sectors, particularly in mining and quarrying, construction, and services.
This decline could contribute to lower consumer prices in the coming months if sustained. However, high inflation rates in key industries such as mining and accommodation underscore the need for ongoing vigilance in managing price stability.
