Consumers, businesses, and policymakers are being encouraged to modify their spending and pricing strategies following a 3.3 percent month-on-month rise in producer prices for January 2026.
Data published by the Ghana Statistical Service indicates that while year-on-year producer inflation remains moderate, there is a strengthening of short-term price momentum.
During the release of the January Producer Price Index (PPI), Government Statistician Dr. Alhassan Iddrisu detailed specific recommendations for households, businesses, and policymakers.
For consumers, he advised: “Redirect consumption towards goods and services with more stable prices to safeguard real incomes.”
He further remarked: “Make well-informed spending choices by concentrating on value and price, utilizing PPI trends to inform purchasing strategies.”
Regarding businesses, particularly those reliant on manufactured inputs, he stated: “Given that manufacturing inflation is negative, firms dependent on manufactured inputs should negotiate medium-term supply contracts to ensure favorable pricing.”
However, he warned: “The 3.3% month-on-month increase indicates short-term price pressures. Firms should adjust their pricing strategies with caution to prevent a contraction in demand.”
For the government, Dr. Iddrisu stressed the importance of closely monitoring price fluctuations, stating: “With moderate year-on-year inflation but significant month-on-month growth, authorities should vigilantly observe short-term price momentum to avert reacceleration.”
He also highlighted the opportunity presented by decreasing transport costs:
“The decline in transport inflation is beneficial for cost competitiveness. Therefore, policies should focus on ensuring fuel supply stability and enhancing logistics efficiency.”
The January PPI data serves as an early indicator of cost trends within the production sector, which may have implications for consumer inflation in the months ahead.
