"More Firms to Reduce Prices from July 1, but Expectations Must Be Measured \u2013 GNCCI Boss Says\u00a0"

More Firms to Reduce Prices from July 1, but Expectations Must Be Measured – GNCCI Boss Says 

Chief Executive Officer of the Ghana National Chamber of Commerce and Industry (GNCCI), Mark Badu Aboagye, has announced that more businesses and manufacturing firms are expected to reduce the prices of goods beginning July 1, 2025, as they adjust to recent economic developments.

Speaking on PM Express Business Edition on Thursday, June 19, Mr. Badu Aboagye explained that most manufacturing firms have now realigned their accounts, reviewed input costs, and renegotiated supplier contracts, positioning them to pass on cost reductions to consumers.

However, he cautioned against expecting sweeping or immediate reductions in prices, urging the public to manage expectations.

“We should manage expectations on these reductions,” Mr. Badu Aboagye advised, responding to calls for significant price cuts due to the Ghana cedi’s sustained appreciation in recent months.

He stressed that some companies had already begun reducing prices earlier this year. “What will happen from July 1, 2025, will be an addition to what has happened so far,” he clarified.

Push for Price Reductions Gathers Momentum

Pressure has mounted on businesses to adjust their prices downward in response to the cedi’s strengthening since April 2025. Government officials and consumer groups have led calls for prices to reflect recent economic gains, including declining inflation and improved currency stability.

But many firms have maintained that contractual obligations and operational timelines make immediate price changes difficult.

Mr. Badu Aboagye defended this position, stating, “Some manufacturing firms were locked into contracts that limited their ability to respond quickly.” He, however, expressed optimism: “Based on engagements with my members, more of them will be adjusting their prices in the coming week.”

Inflation Trends and Cost Dynamics

The Ghana Statistical Service recently reported that Year-on-Year Producer Price Inflation fell to 10 percent in May 2025, down from 18.5 percent in April. The decline has raised questions about why consumer prices have yet to reflect this trend.

Mr. Badu Aboagye pointed out that many firms have already reduced ex-factory prices, but other costs—particularly transportation—have kept retail prices elevated.

He also noted a structural challenge with production costs in Ghana. “Recent CPI data shows that local inflation was higher than imported inflation. You can definitely deduce that the cost of production in Ghana is very high,” he added.

Call for Utility Tariff Reductions

Turning to the upcoming utility tariff review, Mr. Badu Aboagye called on the Public Utilities Regulatory Commission (PURC) to consider downward adjustments in line with macroeconomic trends.

“Inflation has been trending down, and since the last review by the PURC, the cedi has appreciated by more than 40 percent. There is no justification for them not to reduce tariffs,” he asserted.

He stressed that utility costs remain a major input for businesses, adding, “If we want businesses to reduce their prices, reviewing tariffs is one of the surest ways to encourage them and reduce their input costs.”

The GNCCI’s position signals growing confidence among industry players in Ghana’s economic recovery, but also underscores the complex pricing dynamics that continue to affect consumers.