Producer Price Inflation Drops to 10.2% in May, Marking 18-Month Low
Ghana’s year-on-year Producer Price Inflation (PPI) for all goods and services recorded a sharp decline to 10.2% in May 2025, from 18.5% in April 2025, marking the lowest rate recorded in the last 18 months – since November 2023 – when it stood at 11.7%.
This represents an 8.3 percentage point drop in average ex-factory prices received by producers, underscoring a significant easing of inflationary pressures across the country’s production sectors.
The decline was largely driven by the Mining and Quarrying and Manufacturing sectors, which contributed 10.6 and 9.5 percentage points respectively, jointly accounting for 78.7% of the overall PPI.
“These sectors are pivotal to Ghana’s industrial advancement,” noted the Ghana Statistical Service (GSS), adding that the May data signals a window of opportunity for economic stabilization, increased investment, and prudent fiscal management.
The statistical agency highlighted an optimistic inflation outlook, with most sectors experiencing either price stability or a decline. It further pledged to maintain close monitoring of price movements to aid policy formulation and decision-making by the government, businesses, and the public.
In light of the declining input costs, the GSS encouraged businesses to reassess their cost structures and adjust prices to remain competitive in the market.
“Now is the time to reconsider delayed investment or expansion plans, as the pricing environment shows signs of stabilizing,” the GSS advised, further urging businesses to engage financial institutions to negotiate improved loan terms under the current disinflationary trend.
On the policy front, the Service called on the government to expedite initiatives such as the Gold Board and the Agriculture for Transformation Agenda to enhance exchange rate stability and support import substitution.
It also recommended the use of disaggregated sub-sectoral data to inform targeted industry, trade, and inflation management policies.
For consumers and households, the GSS advised against panic buying and stockpiling, urging them instead to adopt smart spending habits and prioritise savings amid the slowdown in price increases.
“With inflation slowing down, this is a moment for households to build financial buffers and take advantage of stable prices,” the GSS noted.
The latest PPI figures, according to the statistical agency, present a favourable macroeconomic signal that, if sustained, could support broader economic recovery and resilience efforts.
