Producer Price inflation falls to 18.5% in April, lowest in three months

Ghana’s Producer Price Inflation (PPI) dropped sharply to 18.5% in April 2025, down from 24.4% in March, according to data released by the Ghana Statistical Service (GSS).

This marks the third straight month of decline in factory gate inflation and reflects easing cost pressures across key production sectors.

The 5.9 percentage point drop was largely driven by significant slowdowns in the mining and quarrying sector—which contributed 10.6 points to April’s rate—and the manufacturing sector, which added 6.9 points. Combined, these sectors accounted for nearly 95% of the overall PPI figure.

On a month-on-month basis, the data revealed deflation of 0.8% in April, meaning producers received lower prices for their goods and services compared to March, when a 0.6% increase was recorded.

Notably, year-on-year inflation in the mining and quarrying sector declined from 35.4% in March to 24.3% in April, while the manufacturing sector dropped from 22.8% to 19.6%. The transport and storage sector also saw a decrease, from 20.4% to 16.2%.

The GSS noted that falling input costs at the producer level may lead to lower consumer prices if businesses pass on the savings, offering potential relief to inflation-weary consumers.

However, the report cautioned that lower factory gate prices could squeeze profit margins, urging businesses to use the current environment to reassess operational costs, localize sourcing, and cautiously explore growth opportunities.

Describing the current trend as “a window for stabilization and responsible investment,” the GSS encouraged both policymakers and private sector players to capitalize on the easing inflation for sustainable economic progress.

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