Ghana’s Producer Price Inflation Falls to 18.5% in April

Ghana’s Producer Price Inflation Falls to 18.5% in April

Story By: Akua Oteng Amponsah

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

This marks the third consecutive monthly decline, indicating a continued easing of price pressures at the factory gate.

The year-on-year decline of 5.9 percentage points was primarily driven by moderating inflation in the mining and quarrying and manufacturing sectors.

These two sectors accounted for nearly 95% of the month’s producer inflation, with mining and quarrying contributing 10.6 percentage points and manufacturing adding 6.9 points.

On a month-on-month basis, producers experienced a deflation of 0.8%, indicating that average factory gate prices were lower in April than in March. Year-on-year inflation in the mining and quarrying sector dropped from 35.4% to 24.3%, while the manufacturing sector saw a fall from 22.8% to 19.6%. The transport and storage sector also recorded a decline from 20.4% to 16.2%.

According to the Ghana Statistical Service, “reduced input costs for producers could eventually translate to lower consumer prices if the reductions are passed along the supply chain.”

The Service noted that this development may offer a potential boost to economic activity if properly leveraged.

However, the Service also cautioned that the slowdown in inflation presents challenges for businesses, particularly in terms of tighter profit margins.

“This is a window for stabilisation and responsible investment,” it stated, urging policymakers and industry stakeholders to use the period of relative price stability to reassess operational costs, explore local sourcing, and cautiously resume expansion efforts to sustain long-term economic growth.

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