June Producer price inflation slows to 5.9%

• lowest in 19 months
• 5th consecutive monthly decline
• driven by easing industrial and services costs

By Juliet ETEFE ([email protected])

Producer price inflation (PPI) fell to its lowest in 19 months – since November 2023 – as it recorded a notable drop to 5.9 percent year-on-year (YoY) in June 2025, down from 10.1 percent in May 2025.

Freshly released data by the Ghana Statistical Service (GSS) showed a 4.2 percentage point decline, which marks the fifth consecutive month of disinflation and reflects a broad easing of input cost pressures across key sectors, including industry and services.

On a month-on-month (M/M) basis, producer prices registered a deflation of 1.4 percent between May and June on account of lower average prices at the factory gate.

The downturn in inflation was particularly evident in the mining, manufacturing and electricity sub-sectors, which collectively contributed to the overall decline.

Analysts view the latest figures as a signal of stabilising cost structures in the real economy, although risks remain in isolated areas of production.

Sectoral breakdown

Industry (excluding construction) recorded an annual inflation of 6.8 percent in June, down from 10.1 percent in May. Monthly prices in the sector contracted by 1.6 percent.

Mining and quarrying saw the sharpest decline, with inflation falling by 7.2 percentage points to 6.5 percent – largely due to a significant deflation in the extraction of crude oil and natural gas, which posted a 25.1 percent decline on a monthly basis.

The manufacturing sector recorded an annual inflation rate of 7.6 percent in June, down from 9.8 percent in May.

Prices contracted by 0.9 percent MoM. Within the category, motor vehicle manufacturing registered the highest inflation at 35.8 percent, while petroleum refining saw steep deflation of 10.6 percent.

The electricity and gas sub-sector also recorded marked price declines with a monthly drop of 3.4 percent, pulling annual inflation down to 5.1 percent.

In the construction sector, over the past year producer inflation eased to 6 percent in June from 7.4 percent in May 2025 – accompanied by a 0.4 percent MoM decline.

Civil engineering posted the highest inflation at 11.5 percent, followed by specialised construction activities at 17.5 percent. However, building construction retracted, with prices down 6.7 percent YoY.

Services moderate further

The services sector posted a modest YoY inflation of 0.7 percent in June, down from 1.7 percent the previous month.

Prices declined 0.3 percent MoM, with notable softness in accommodation, food and transport services.

Accommodation and food services saw a pronounced reversal, shifting from a 6.5 percent increase in May to 2.7 percent deflation in June – a swing of 9.2 percentage points.

Transport and storage recorded a steeper monthly deflation of 7 percent compared to 4.8 percent in May. Inflation in information and communication services moderated slightly to 2.6 percent.

Policy advice

In response to the broad-based disinflation, the GSS has urged businesses to re-evaluate their pricing strategies to align with declining input costs.

It also called on policymakers to introduce targetted support for high-potential sectors to reinforce production and competitiveness.

“For government, now is the time to lock in stability, boost production, and support key sectors like mining and manufacturing with smart incentives,” the GSS stated.

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