The latest Producer Price Index (PPI) has reported a year-on-year producer inflation of 5.9% in June 2025, down from 10.1% in May, making it the lowest rate since November 2023.
On a month-to-month basis, producer prices declined by 1.4%. This means that the average prices producers received for their goods and services in June were 1.4% lower than in May.
The June PPI becomes the fifth consecutive month of drastic drop. However, the Ghana Statistical Service (GSS) is urging businesses to go beyond price adjustments and rethink their approach to pricing, strategy, and innovation to ensure those cost reductions translate into real relief for consumers.
“For businesses, rethink pricing and renegotiate smartly,” Dr. Alhassan Iddrisu, the Government Statistician advised. “Falling costs bring opportunity, but tighter margins too. Stay ahead by innovating, not just adjusting prices.”
The GSS also issued a strong message to the government and consumers.
To policymakers, it recommended: “Lock in stability, boost production, and support key sectors with smart incentives to drive demand, protect jobs, and keep the momentum strong.”
He also urged the government to maintain macroeconomic stability, stimulate production, and provide smart incentives particularly for sectors like mining and manufacturing to sustain growth, protect jobs, and drive demand.
To consumers, the GSS advised vigilance: “Buy smart, question markups, and support brands that pass savings on.”
Transport and hospitality services have already seen notable price drops. Transport inflation declined further to -7.0%, while prices in accommodation and food services swung sharply from a 6.5% rise to a 2.7% drop a significant turnaround.
The Mining and Quarrying sector Ghana’s largest contributor to the PPI with a 43.7% weighting saw inflation plunge by 7.2 percentage points, from 13.7% in May to 6.5% in June 2025.
Likewise, inflation in the Manufacturing sector, which accounts for 35% of the PPI basket, dropped from 9.8% to 7.6%, representing a 2.2 percentage point reduction. These two sectors were the primary drivers behind the broader decline in producer inflation.
The data also pointed to continued price reductions in several key sectors. Transport costs, for instance, fell further from -4.8% in May to -7.0% in June 2025.
In the hospitality industry, hotel and restaurant prices reversed sharply from a 6.5% increase in May to a 2.7% decline in June representing a dramatic 9.2 percentage point swing.
