The year-on-year producer price inflation (PPI) for ex-factory prices of all goods and services fell sharply to 10.2% in May 2025, down from 18.5% in April 2025.
This marks the lowest rate recorded since November 2023 (1.7%).
It also means that the average prices producers received for their goods and services dropped by 8.3 percentage points in May 2025 compared to April 2025.
Key Drivers
According to the Ghana Statistical Service (GSS), the two most significant contributors to the decline were:
Mining and Quarrying (contributing 10.6 percentage points), and
Manufacturing (contributing 9.5 percentage points),
These two sectors accounted for 78.7% of the total PPI, underscoring their importance to Ghana’s industrial landscape.
The GSS described this drop as an opportunity for stabilization, investment, and responsible spending.
Outlook and Guidance
The Service noted that the overall outlook appears optimistic, as producer inflation continues its downward trend and most sectors are experiencing price stability or even declines.
It pledged to continue monitoring price trends and providing timely updates to guide public, business, and government decision-making.
Implications for Stakeholders
Businesses
The GSS encouraged businesses to:
Review their cost structures and adjust prices to stay competitive in the face of declining input costs.
Resume paused investments or expansion plans, capitalizing on the more stable pricing environment.
Engage financial institutions to renegotiate or secure better loan terms due to lower inflationary pressures.
Government
The GSS urged the government to:
Fast-track strategic initiatives like the Gold Board and the Agriculture for Transformation Agenda to promote exchange rate stability and import substitution.
Use detailed sub-sector data to enhance inflation control, and inform industry and trade policies.
Consumers and Households
Consumers were advised to:
Save more, as prices are rising slowly or declining.
Avoid panic buying, and instead shop wisely and steer clear of unnecessary stockpiling.