Dr. Alhassan Iddrisu, Government Statistician
The year-on-year producer price inflation (PPI) in ex-factory prices for all goods and services reduced drastically to 10.2% in May 2025 from 18.5% in April 2025, according to the Ghana Statistical Service (GSS).
This is the lowest rate recorded since November 2023(1.7%). It also means that the average prices that producers received for their goods and services fell by 8.3% in May 2025 from April 2025.
The two most important contributors to the decline of producer price inflation in May 2025 were Mining and Quarrying (10.6 percentage points) and Manufacturing (9.5 percentage points), both accounting for 78.7% of PPI.
Meanwhile, electricity and gas saw a surge, recording a 4.6% month-on-month inflation rate for the month of May.
The GSS alluded that the overall outlook appears optimistic, as producer inflation is downward, and most sectors are experiencing price stability or declines.
The GSS described the decline as a potential catalyst for investment, urging businesses to take advantage of the stable pricing environment by revisiting expansion plans and negotiating better loan terms.
It urged firms to adjust their pricing strategies and source locally to manage costs. For businesses, the GSS called for a review of the cost structure and adjust prices to remain competitive as input prices decline. It also urged them to resume paused investments or expansion plans, supported by a more stable pricing environment. Again, it advised them to engage financial partners to renegotiate or secure better loan terms due to lower input inflation.
The GSS further advised the government to fast-track key industrial policies such as the Gold Board and the Agriculture for Transformation Agenda to sustain the trend, boost exchange rate stability, and enhance import substitution.
It also advocated the use of detailed sub-sector data to guide inflation control, industry, and trade policies.
For consumers and households, the GSS urged them to save more as prices are rising slowly or even falling. They were also advised to avoid panic buying; shop wisely and avoid unnecessary stockpiling.
A Daily Guide Report