Producer Inflation Drops to 24.4% in March, Reflecting Decline in Industrial Prices
Ghana’s year-on-year Producer Price Inflation (PPI) for March 2025 has dropped to 24.4%, down from the 27.6% recorded in February 2025, signalling a further slowdown in price increases at the production level.
This is according to the latest data released by the Ghana Statistical Service (GSS), which shows a marginal decline in price pressures faced by producers of goods and services. On a month-on-month basis, producer inflation rose by 0.6% in March 2025, lower than the 1.5% rise recorded in the preceding month.
The Producer Price Index measures the average change over time in the prices received by domestic producers for their output and is a key indicator of inflationary trends in the economy.
A sectoral breakdown of the data indicates that the Industry sector—excluding construction—remains the largest contributor to overall producer inflation, despite a significant fall in its rate from 42.9% in February to 36.3% in March. The sector recorded a month-on-month inflation rate of 0.7%.
Within the Industry sector, the Mining and Quarrying sub-sector saw a sharp decline in inflation, falling by 9.2 percentage points to 35.4%, from 44.6% in February. The Electricity and Gas sub-sector also recorded a notable decline to 5.1%, representing a 4.6 percentage point drop from 9.7% the previous month.
Conversely, the Manufacturing sub-sector registered an increase in inflation, rising by 2.0 percentage points to 22.8%. The Water supply, sewerage and waste management sub-sector recorded a relatively stable inflation rate of 4.8%.
In the Construction sector, inflation marginally declined to 15.4% in March from 15.8% in February. Month-on-month, the sector experienced a 0.1% change. The Construction of buildings sub-sector fell by 1.6 percentage points to 14.3%, while the Specialised construction activities sub-sector dropped to 17.9% from 18.5%. The Civil Engineering sub-sector saw no change, maintaining an inflation rate of 15.7%.
The Services sector recorded a year-on-year inflation rate of 7.2% in March 2025, representing a slight decline from the 7.8% recorded in February. The sector’s month-on-month inflation was 0.2%.
Sub-sector data within Services show that Transport and Storage recorded a fall in inflation to 20.4% in March, down from 22.7% in February. The Accommodation and Food Services sub-sector also saw a significant decline, with inflation falling by 6.5 percentage points to 22.6%. The Information and Communication sub-sector posted a relatively low inflation rate of 4.1%.
The drop in producer inflation across several sectors suggests a moderation in production cost pressures, which could potentially translate into more stable consumer prices in the months ahead.
