The Ghana Statistical Service (GSS) has called on businesses to capitalize on easing inflationary pressures by revising pricing strategies and resuming expansion plans, following a significant drop in the Producer Price Index (PPI).
New data shows year-on-year producer inflation fell sharply to 10.2% in May 2025 from 18.5% in April, marking the lowest level since November 2023 and the fourth consecutive monthly decline.
In its May report, the GSS outlined specific recommendations for businesses, stating they should “review cost structures and adjust prices to remain competitive as input prices decline.” The statistical service also advised companies to reactivate growth initiatives, noting the improved conditions for “resuming paused investments or expansion plans.” Additional guidance included increasing local sourcing to reduce import dependency and renegotiating financing terms with lenders.
Sectoral analysis revealed manufacturing and mining drove 78.7% of the overall inflation reduction, with month-on-month producer prices dropping 5.3% and 4.8% respectively. The transport sector also saw substantial declines, while electricity and gas prices bucked the trend with a 4.6% increase.
Economists suggest this sustained disinflation at the production level could soon translate to consumer price relief if businesses pass on cost savings. The GSS emphasized that proactive adjustments by enterprises could help stabilize markets and support Ghana’s broader economic recovery efforts.
