Producer Price Inflation drops to 3%, the lowest since November 2023
Producer Price Inflation drops to 3%, the lowest since November 2023
Ghana’s Year-on-Year producer price inflation declined to 3.0% in August 2025, down from 3.6% in July, marking a 0.6 percentage point decrease.
This means that, on average, the ex-factory prices of goods and services rose by 3.0% between August 2024 and August 2025.
The August figure is the lowest producer inflation since November 2023 and represents the seventh consecutive month of decline.
On a month-on-month basis, producer prices increased by 2.1% from July to August 2025.
Per the latest data from the Ghana Statistical Service, the decline in producer inflation was largely driven by the manufacturing sub-sector, which accounts for 35% of the PPI.
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It eased from 3.2% to 1.6%, contributing significantly to the overall decline in producer inflation
The Mining and Quarrying, the largest sector with a 43.7% weight in the PPI, saw inflation rise slightly from 4.6% in July to 4.9% in August, while accommodation and food services continued to record negative inflation, dropping from -2.7% in July to -3.1% in August.
Recommendations
The GSS guided businesses, government, and households in light of the easing inflation.
For businesses, it urged them to take advantage of lower production costs to cut expenses, improve margins, reinvest in technology and productivity, and position firms to withstand future economic shocks.
The GSS called on the Government to continue supporting industry through targeted tax reliefs, infrastructure investments, and policies that encourage domestic production and stronger value chains.
Households/Consumers were asked to shop carefully, compare prices, support businesses that pass on cost savings, and use this period to plan spending and build savings.
The decline in producer price inflation signals easing cost pressures for businesses and consumers, providing a potential window for economic growth and stability.
