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Producer Price Inflation Drops to 5.9% in June

3 months ago
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Producer Price Inflation Drops to 5.9% in June

Ghana’s year-on-year Producer Price Inflation (PPI) for June 2025 declined sharply to 5.9%, marking the lowest level recorded since November 2023, according to the latest data released by the Ghana Statistical Service (GSS).

The June reading represents a 4.2 percentage point drop from the 10.1% rate recorded in May 2025 and a significant 19.7 percentage point decline compared to the rate posted in June 2024. It also marks the fifth consecutive month of disinflation.

On a month-on-month basis, the data revealed producer price deflation of 1.4%, indicating that average prices received by producers in June were lower than those in May 2025.

The decline was largely driven by steep falls in the country’s two dominant sectors. Inflation in the Mining and Quarrying sector, which holds the largest PPI weight of 43.7%, dropped from 13.7% in May to 6.5% in June, while inflation in the Manufacturing sector, accounting for 35% of the PPI basket, fell from 9.8% to 7.6%.

Meanwhile, the Transport sector recorded deeper deflation at -7.0%, from -4.8% the previous month. The Hotels and Restaurants sub-sector also saw a significant swing from +6.5% in May to -2.7% in June—a sharp 9.2 percentage point reversal.

The GSS noted that if the declining input costs are passed on, consumers could begin to experience meaningful price relief across transport, food services, and travel.

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“Falling costs bring opportunity, but tighter margins too. Stay ahead by innovating, not just adjusting prices,” the GSS advised businesses in its report.

It further urged government to consolidate the emerging price stability by introducing smart incentives that support output expansion, particularly in mining and manufacturing, to protect jobs and sustain momentum.

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