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April 2025 Producer Price Inflation Declines to 18.5%

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April 2025 Producer Price Inflation Declines to 18.5%

Ghana’s year-on-year producer price inflation (PPI) for April 2025 fell to 18.5%, down from the 24.4% recorded in March 2025, according to the latest data released by the Ghana Statistical Service (GSS).

The sharp decline in the PPI — which measures the average change over time in the prices received by domestic producers for their output — points to easing inflationary pressures in the production sector.

On a month-on-month basis, producers recorded a deflation of 0.8% between March and April 2025, indicating a fall in ex-factory prices of goods and services. This means that, on average, producers earned 0.8% less for their products in April compared to the previous month.

Manufacturing Sub-Sector Trends

The Manufacturing sub-sector, which remains a key driver of producer inflation, recorded an average inflation rate of 20.8%. However, five out of the 23 major industry groups within the sector recorded rates higher than the sub-sector average.

The manufacture of basic metals registered the highest inflation at 38.0%, followed closely by the manufacture of motor vehicles, trailers and semi-trailers at 35.8%. In contrast, the manufacture of coke and refined petroleum products recorded the lowest inflation within the group at -1.6%, reflecting a decline in prices received by producers.

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Mining and Quarrying Sub-Sector Performance

Within the Mining and Quarrying sub-sector, the extraction of crude oil and natural gas experienced a deflation of 12.6% in April, representing a 15.1 percentage point drop from the inflation rate of 2.5% recorded in March.

The mining of metal ores recorded an inflation rate of 56.0% in April, down from 62.2% in the previous month, while the activities of mining support services posted the highest inflation rate within the sub-sector at 66.0%.

Electricity and Gas Sub-Sector

For the Electricity and Gas sub-sector, power generation, transmission and distribution registered a relatively modest inflation rate of 5.5% in April.

Meanwhile, the manufacture of gas and the distribution of gaseous fuels recorded a deflation of 0.9%, further contributing to the downward pressure on overall producer price inflation.

The continued moderation in producer prices, particularly across manufacturing and extractive industries, suggests improving stability in cost structures — a development that could potentially reflect in lower consumer inflation in the months ahead.

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