Ghana’s Producer Price Inflation (PPI) dropped significantly to 18.5% in April 2025, down from 24.4% in March, according to new data released by the Ghana Statistical Service. This marks the third straight month of decline, indicating sustained easing of cost pressures at the factory gate.
The 5.9 percentage point fall in the year-on-year rate was largely driven by slower price growth in the mining and quarrying sector, which contributed 10.6 percentage points to April’s inflation, and the manufacturing sector, which added 6.9 points. Combined, the two sectors accounted for nearly 95% of overall producer inflation for the month.
Month-on-month data showed a 0.8% deflation in April, reversing the 0.6% uptick recorded in March. This suggests average factory gate prices declined, and producers may have earned less per unit of output sold.
Sector-specific data highlighted notable declines. Mining and quarrying inflation dropped from 35.4% in March to 24.3% in April, while manufacturing fell from 22.8% to 19.6%. Inflation in the transport and storage sector also eased from 20.4% to 16.2%.
The Statistical Service noted that the fall in producer inflation could ease input costs for businesses and potentially lead to lower consumer prices, provided cost reductions are passed through the supply chain.
However, the report cautioned that narrowing producer margins may limit profitability. It encouraged firms to use the current period of price stability to reevaluate cost structures, consider local sourcing, and cautiously ramp up production and investment.
Describing the trend as “a window for stabilization and responsible investment,” the Service urged policymakers and industry players to capitalize on the slowdown to support sustainable economic recovery.
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