In April 2025, Ghana experienced a significant decrease in Producer Price Inflation (PPI), which fell to 18.5% from 24.4% in March, as reported by the Ghana Statistical Service. This decline marks the third consecutive month of decreasing producer inflation, indicating a reduction in price pressures at the factory level.
The year-on-year decrease of 5.9 percentage points is primarily attributed to a slowdown in price increases in two major sectors: mining and quarrying, which contributed 10.6 points to April’s inflation, and manufacturing, which added 6.9 points. Collectively, these sectors represented nearly 95% of the inflation rate for the month.
Month-on-month, producers faced a deflation of 0.8%, suggesting that average factory gate prices were lower in April compared to March, a shift from the 0.6% increase noted in March, indicating that producers may be earning less revenue per unit sold.
Among various industries, mining and quarrying experienced the most significant year-on-year inflation drop, decreasing from 35.4% in March to 24.3% in April, while the manufacturing sector fell from 22.8% to 19.6%.
The transport and storage sector also saw a reduction in its inflation rate from 20.4% to 16.2%. This decline in producer inflation could potentially benefit the wider economy, as the Statistical Service suggests that lower input costs for producers may lead to reduced consumer prices if these savings are passed down the supply chain.
Nevertheless, the report cautions that despite the slowing inflation, producers might encounter tighter profit margins. Businesses are advised to capitalize on the relative price stability to reassess their costs, consider local sourcing options, and cautiously resume expansion initiatives.
The Ghana Statistical Service characterized this trend as “an opportunity for stabilization and prudent investment,” encouraging policymakers and industry stakeholders to utilize the slowdown to foster sustainable economic growth.
