Producer Price Inflation in Ghana Drops to 18.5% in April, Signaling Easing Cost Pressures

Ghana’s Producer Price Inflation (PPI) saw a notable drop in April 2025, falling to 18.5% from 24.4% in March, according to new data from the Ghana Statistical Service. This marks the third consecutive month of declining producer inflation, indicating a slowdown in price pressures at the factory gate and offering signs of stabilization in production costs.

The significant 5.9 percentage point decline in the year-on-year PPI was mainly driven by reductions in inflation within the mining and quarrying, and manufacturing sectors. These two sectors were the primary contributors to April’s inflation, accounting for nearly 95% of the overall figure, with mining and quarrying contributing 10.6 points and manufacturing 6.9 points.

In addition to the annual figures, the month-on-month data revealed a deflation rate of 0.8% in April. This contrasts with the 0.6% increase recorded in March, implying that factory gate prices actually fell, which could lead to lower revenues per unit for producers. This shift may offer relief to businesses that have struggled with high input costs in recent months.

Breaking down the sectoral performance, mining and quarrying experienced the largest year-on-year drop, decreasing from 35.4% in March to 24.3% in April. Manufacturing inflation also declined from 22.8% to 19.6%, while the transport and storage sector saw its inflation ease from 20.4% to 16.2%.

While the cooling inflation could eventually lead to reduced consumer prices, the Ghana Statistical Service cautioned that shrinking producer prices might pressure profit margins. The agency urged businesses and policymakers to use this period of relative stability to reevaluate operations, enhance local sourcing, and cautiously pursue growth, describing it as an opportunity for “stabilization and responsible investment.”

Source: Nairametric