- Producer Inflation Accelerates to 4.4% as Mining Contributes Nearly Half of Price Growth
Ghana’s producer price inflation accelerated to 4.4% in August 2026 from 4.0% in July, driven largely by higher mining and quarrying prices, which accounted for almost half of the overall increase in factory-gate costs.
Data from the Ghana Statistical Service show that producer prices also increased 2.5% between July and August, compared with a 2.0% month-on-month increase in July, indicating a renewed build-up in cost pressures facing domestic producers.
Mining and quarrying emerged as the principal driver of the August increase. The sector, which carries a 43.7% weight in the Producer Price Index, recorded annual inflation of 4.9%, up sharply from 3.5% in July.
Its contribution to headline producer inflation was 2.1 percentage points, equivalent to almost 48% of the overall 4.4% rate. On a month-on-month basis, mining and quarrying prices rose 4.9%, accelerating from 3.0% in July.
The development marks a shift in the composition of Ghana’s producer inflation, with mining rather than broad-based manufacturing price increases responsible for much of the renewed pressure.
Within the mining sector, extraction of crude oil and natural gas recorded annual producer inflation of 12.9%, making it the strongest source of price growth. Mining support services recorded 5.7%, while other mining and quarrying rose 5.6%.
Metal ore mining remained in deflation at -0.4%, although that represented an improvement from -2.3% in July.
The wider industrial sector also recorded stronger inflation.
Producer inflation for industry excluding construction rose to 6.3% in August from 5.6% in July, while prices increased 3.1% month-on-month. The industrial index rose to 316.1 from 306.7 in July and 297.4 a year earlier.
Manufacturing, however, provided a more moderate picture.
Annual manufacturing inflation eased marginally to 3.6% from 3.7% in July, while monthly prices increased 1.3%. The sector carries a 35% weight in the overall PPI, making its relatively contained price movement important in preventing the headline rate from rising more sharply.
There were nevertheless significant cost pressures within individual manufacturing industries.
Leather and related products recorded the highest inflation rate at 17.4%, followed by fabricated metal products at 16.4%. Furniture prices increased 9.2%, machinery and equipment 8.5%, wood products 8.4% and food manufacturing 7.1%.
Twelve of the 23 major manufacturing groups recorded inflation above the manufacturing average of 3.6%. At the opposite end, production of other non-metallic mineral products recorded deflation of 2.4%.
Energy also remained an important source of producer costs.
Electricity and gas recorded annual inflation of 12.3%, the highest among the broad activities covered by the PPI, although this represented an easing from 13.3% in July. Month-on-month prices in the sector declined marginally by 0.1%.
Water supply, sewerage and waste management recorded inflation of 10.1%, unchanged from the previous month.
The contrast with construction and services was particularly pronounced.
Construction producer inflation eased to 4.5% from 4.8% in July and recorded a 0.2% month-on-month decline. Within the sector, construction of buildings remained the main source of pressure, with annual inflation of 6.9%, compared with 4.3% for specialised construction activities and 3.5% for civil engineering.
Utility construction recorded considerably stronger inflation of 21.7%, while other specialised construction activities rose 11.1%.
Services recorded the lowest broad-sector inflation rate at 1.8%, down from 2.5% in July. Service producer prices declined 0.3% month-on-month.
Transport and storage inflation stood at 6.5%, accommodation and food services at 7.5%, while information and communication recorded just 0.6%.
Beneath those averages, however, individual service industries showed sharp divergence.
Land transportation recorded annual inflation of 23.4%, while air transport stood at 9.3%. Motion picture, video and television production, sound recording and music publishing recorded an unusually high 87.9%, although telecommunications prices were unchanged.
The August numbers matter because producer prices provide an early indication of cost pressures before they potentially reach consumers.
GSS describes the PPI as an economic early-warning indicator because it measures prices received by domestic producers at the factory gate, helping policymakers and businesses assess emerging inflation pressures before they filter through supply chains and retail markets.
The latest data therefore present a more nuanced inflation picture than the headline increase alone suggests.
Producer inflation remains relatively moderate at 4.4%, while manufacturing, construction and services are showing either stable or easing annual cost pressures. But mining, crude oil and utilities are creating pockets of significantly higher inflation that could become more important if sustained.
For businesses, the GSS recommends improving operational efficiency, strengthening cost controls, diversifying suppliers and investing in productivity-enhancing technologies. Policymakers are encouraged to use the PPI to identify sectors experiencing significant price increases and respond to the specific factors driving those pressures.
The immediate concern will therefore be whether August represents a temporary mining-led increase or the beginning of a broader reversal in Ghana’s producer inflation trajectory.
With mining responsible for about half of the current headline rate and electricity and gas still recording double-digit annual inflation, the composition of producer costs bears watching even as pressures in construction and services continue to ease.
GSS characterises the current environment as one in which producer inflation remains “moderate but persistent”, identifying mining and quarrying as the sector to watch.
For Ghana’s inflation outlook, that distinction is critical: the headline remains contained, but the renewed acceleration at the factory gate shows that the underlying cost environment has not yet become uniformly benign.
