Ghana’s Producer Price Inflation Dips to 24.4% in March Amid Sectoral Shifts and Tariff Concerns

Ghana’s Producer Price Inflation (PPI) saw a notable decline in March 2025, falling to 24.4% from 27.6% the previous month, according to new data from the Ghana Statistical Service (GSS). The month-on-month rate edged up slightly by 0.6%. This drop signals some easing in cost pressures on producers, although certain sectors are still experiencing elevated inflation rates.

The Mining and Quarrying sector remained the highest contributor to producer inflation at 35.4%, despite a sharp drop from 43.7% in February. The Manufacturing sector followed closely, seeing a slight increase in inflation from 20.8% to 22.8%. On the other hand, sectors like Construction and Accommodation & Food Services experienced modest declines, while the Information and Communication sector reported the lowest inflation at 4.1%.

The PPI, which reflects changes in prices received by domestic producers, offers critical insights into Ghana’s economic health across key sectors including electricity, gas, transport, and water supply. Although the headline inflation figure appears promising, stakeholders remain cautious, especially in light of recent utility tariff hikes that may undercut these gains.

Tsonam Akpeloo of the Association of Ghana Industries expressed concern over rising electricity and water tariffs, calling for more favorable industrial pricing to support local production. He warned that without targeted relief for manufacturers, the reduction in PPI may not result in sustainable industrial growth. His comments highlight the delicate balance policymakers must maintain to ensure inflation drops actually benefit producers on the ground.

Source: Citi newsroom