The country’s year-on-year producer price inflation in May 2025 fell to 10.2 per cent from 18.5 per cent in April.
This represents a decline of 8.3 percentage points from 18.5 per cent in April 2025.
The Government Statistician, Dr Alhasan Iddrisu, who disclosed this in Accra on Wednesday when he released data on the May 2025 PPI, said the May PPI marked a fourth consecutive decline in producer price inflation.
“Producer inflation is declining at a faster rate. This rate is the lowest recorded since November 2023(1.7 per cent),” Dr Iddrisu stated.
On a month-on-month basis, the average prices that producers received for their goods and services fell by 4.2 per cent in May compared to April 2025.
The Government Statistician explained that the two most important contributors to the decline of producer price inflation in May 2025 were Mining and Quarrying (10.6 percentage points) and
Manufacturing (9.5 percentage points), both accounting for 78.7 per cent of PPI.
The two sectors, Dr Iddrisu stated were key to Ghana’s industrial growth, saying “This presents a window for stabilisation, investment, and responsible spending.”
The Government Statistician said the year- on-year producer price inflation for the services sector fell to 1.7 per cent in May from 5.9 per cent in April.
That of manufacturing, he said also fell to 10.1 per cent in May from 19.6 per cent in April, and construction fell to 7.4 percent in May from 13.9 per cent in April.
He said the producer price for electricity and gas surged to 8.9 per cent in May from 5.3 per cent in April.
That of water supply, sewerage and waste management fell to 4.2 per cent in May from 4.2 per cent in April.
Dr Iddrisu stated that transportation and sewerage saw a deflation in producer price inflation of 4.2 per cent in May from 16.2 per cent in April and accommodation and food service activities saw a drop in producer price inflation to 6.5 per in May from 20.6 per cent in April.
Dr Iddrisu said the producer price inflation for information and communication fell to 2.9 per cent in May from 3.4 per cent in April.
The Government Statistician suggested that businesses should review their cost structure and adjust prices to remain competitive as input prices decline.
He said the businesses must resume paused investments or expansion plans, supported by a more stable pricing environment and Increase sourcing from local suppliers to reduce costs and minimize currency/import risks.
Dr Iddrisu encouraged businesses to engage with financial partners to renegotiate or secure better loan terms due to lower input inflation.
The Government Statistician said the government must fast-track strategic initiatives like the Gold Board and Agriculture for Transformation Agenda to boost exchange rate stability and import substitution.
He said the government must use detailed sub-sector data to guide inflation control, industry, and trade policies and strengthen public education on producer price inflation, its causes, effects, and relevance, to promote transparency and informed decision-making.
He said the government must communicate positive economic trends clearly to build public trust and confidence in the economy’s direction.
To consumers and households, the Government Statistician urged them to save more as prices were rising slowly or even falling.
BY KINGSLEY ASARE
