Dr. Alhassan Iddrisu – Government Statistician
The Ghana Statistical Service (GSS) has reported a decline in the Producer Price Index (PPI) for August 2025, with overall producer inflation falling to 3.0 percent year-on-year, down from 3.6 percent in July.
In a release signed by the Government Statistician, Dr. Alhassan Iddrisu, the PPI was described as measuring the average change over time in the prices received by domestic producers across industries (excluding construction) and services.
According to the GSS, the month-on-month change in the PPI stood at 2.1 percent, indicating a moderate rise in producer prices between July and August.
Within the industry sector (excluding construction), the Industrial Producer Price Index (I-PPI) inflation rate was 3.5 percent in August, down 0.6 percentage points from July’s 4.1 percent. Industrial producer prices rose 2.4 percent month-on-month.
Mining and quarrying continued to lead with the highest price index, climbing 4.9 percent year-on-year to 355.6 points in August after rebounding from a dip in May.
The manufacturing sector recorded 1.6 percent annual inflation, while electricity and gas saw a notable 6.9 percent rise. Water supply, sewerage, and waste management remained relatively stable, increasing 3.4 percent year-on-year.
Thirteen out of 23 major manufacturing groups posted inflation rates above the sector average, with the manufacture of motor vehicles, trailers, and semi-trailers (35.8%) and leather products (33.2%) leading.
In contrast, refined petroleum products (-11.8%) and basic metals (-11.2%) recorded deflation.
The Construction Producer Price Index (C-PPI) registered a 4.3 percent annual inflation rate, down from 5.3 percent in July. However, prices declined 0.6 percent month-on-month.
Civil engineering projects posted the highest inflation within the sector at 11.6 percent, driven largely by utility construction.
The construction of buildings sub-sector, which had remained relatively stable through March 2025, recorded a sharp year-on-year decline of 11.2 percent.
Specialised construction activities, including building completion and finishing, also slowed, falling from 8.2 percent in July to 7.6 percent in August.
The Service Producer Price Index (S-PPI) registered a rare deflation of 0.3 percent year-on-year, a sharp 5.3 percentage point drop from July’s 5.0 percent. However, service producer prices inched up 0.4 percent month-on-month.
Transport and storage recorded the steepest annual decline (-8.0%), while accommodation and food services dropped 3.1 percent. Food and beverage service activities slowed significantly, posting 5.6 percent inflation compared to 10.8 percent in July.
Information and communication remained the most stable sub-sector, with a modest 1.5 percent year-on-year increase.
The GSS noted that the August 2025 figures are provisional and subject to revision as additional data becomes available.
By Vera Owusu Sarpong