Ghana’s Producer Inflation Falls to 10.2% in May 2025: Lowest Since 2023 Amid Sector-Wide Deflation
Ghana’s producer price inflation (PPI) dropped sharply to 10.2% in May 2025 from 18.5% in April, marking the lowest rate since November 2023. The Ghana Statistical Service (GSS) attributed the continued decline to broader economic stabilization, as May marked the fourth straight month of slowing producer inflation. This downward trend signals greater pricing stability across industries, which may influence future business and investment decisions.
The latest data shows a 4.2% decrease in producer prices on a month-on-month basis, with the PPI falling to 262.4 in May from 273.9 in April. This deflation in ex-factory prices highlights a notable shift in cost structures for producers, suggesting that the broader economy may be moving toward a more sustainable price environment.
The sectors most responsible for the decline were Mining and Quarrying, which recorded 13.7% inflation, and Manufacturing at 10.1%. Together, these sectors contributed nearly 79% to the overall drop. Additionally, services like transportation and storage (-13.5%) and accommodation and food services (-9.2%) experienced substantial monthly deflation, further alleviating inflationary pressures.
However, not all sectors saw relief. Electricity and gas recorded a 4.6% increase in prices during May, reflecting higher operational costs in that segment. Despite this, the GSS remains optimistic about the general inflation trajectory and its positive implications for the broader economic landscape.
The GSS encouraged businesses to leverage the stable pricing environment by pursuing expansion plans and seeking favorable financing terms. It also urged the government to implement strategic initiatives like the Gold Board and Agriculture for Transformation Agenda to reinforce inflation control, boost the cedi, and support local production. The agency reaffirmed its commitment to providing timely updates to guide policy and business actions.
Source: Citi newsroom