Ghana’s Producer Price Inflation (PPI) decreased to 24.4 percent in March 2025, a reduction from 27.6 percent in February, marking a decline of 3.2 percentage points. The month-to-month change between February and March was recorded at 0.6 percent, as per provisional data from the Ghana Statistical Service (GSS).
The statistics indicate that the Mining and Quarrying sector experienced the highest producer inflation at 35.4 percent, although this reflects a notable drop from the previous month’s rate of 43.7 percent.
Following this, the Manufacturing sector reported an inflation rate of 22.8 percent, an increase from 20.8 percent in February.
Conversely, the Information and Communication sector exhibited the lowest inflation rate at 4.1 percent, a slight decrease from 4.2 percent the previous month. Other significant figures include:
– Construction: Decreased to 15.4% in March from 15.8% in February
– Accommodation and Food Services: Fell to 7.2%, down from 7.8%
The PPI assesses the average changes over time in the prices received by domestic producers for their goods and services. It encompasses key sectors such as Mining and Quarrying, Manufacturing, Electricity and Gas, Water Supply, Construction, Transport and Storage, Accommodation and Food Services, and Information and Communication.
In related news, Tsonam Akpeloo, the Greater Accra Regional Chairman of the Association of Ghana Industries (AGI), expressed concerns regarding recent hikes in utility tariffs. The revised rates will see electricity prices increase by 14.75 percent, while water tariffs will rise by 4.02 percent universally.
Akpeloo emphasized the necessity for a more industry-friendly utility pricing strategy to maintain the progress achieved in reducing inflation.
“We call on the government to focus on local industrialization and establish special tariff arrangements that significantly lower electricity costs for manufacturers. If not, the advantages of the declining inflation rate may be fleeting,” he stated.
Akpeloo stated, “Should utility prices keep increasing, the total production costs will stay elevated, negating the benefits of a declining Producer Price Index (PPI). These prices are interconnected, and unless utility costs are managed, any reductions in inflation may not lead to genuine competitiveness in the industrial sector.”
