Ghana’s year-on-year Producer Price Inflation (PPI) dropped sharply to 10.2% in May 2025, down from 18.5% in April, marking the lowest rate since November 2023, according to data from the Ghana Statistical Service (GSS).
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This marks the fourth consecutive monthly decline, signaling growing price stability across key industrial sectors.
Month-on-month, producers earned 4.2% less in May than in April, as the Producer Price Index slipped to 262.4, from 273.9 the previous month, pointing to deflation in ex-factory prices.
Key Drivers of the Decline
- Mining and Quarrying: 13.7% decline
- Manufacturing: 10.1% drop
Together, these sectors accounted for 78.7% of the overall inflation decrease.
Sectors like transportation and storage (-13.5%) and accommodation and food services (-9.2%) also saw notable deflation.
Conversely, electricity and gas prices increased, recording a 4.6% month-on-month rise in May.
GSS Encourages Investment and Policy Action
The GSS noted that the inflation decline presents a strategic opportunity for businesses. Firms are encouraged to:
- Reassess expansion plans
- Renegotiate loan terms under more favorable conditions
- Revise pricing strategies and source inputs locally
The government is urged to fast-track industrial policies like the Gold Board and the Agriculture for Transformation Agenda to sustain deflationary momentum, stabilize the cedi, and promote import substitution.
The GSS assured stakeholders of ongoing monitoring and timely data to guide policy decisions, business strategy, and public awareness.
