Ghana’s producer price inflation dropped significantly to 10.2% in May 2025, down from 18.5% the previous month, according to official data released by the Ghana Statistical Service.
This marks the fourth consecutive monthly decline and the lowest annual producer inflation rate recorded since November 2023, signaling potential relief for businesses facing high production costs.
The decrease was driven primarily by cooling prices in the industrial sector, with Mining and Quarrying inflation falling to 13.7% from 24.3% and Manufacturing sector inflation declining to 10.1% from 19.6%. These two sectors, which together account for 78.7% of the producer price index, have shown consistent moderation in price pressures since February. On a monthly basis, producer prices fell by 4.2%, with Manufacturing and Mining recording declines of 5.3% and 4.8% respectively.
While most sectors experienced price reductions, Electricity and Gas stood out with a 4.6% monthly increase, continuing its upward trend. The Ghana Statistical Service noted that while consumers may benefit from potential price stability in coming months, businesses could face tighter profit margins as they adjust to the new pricing environment.
Economic analysts suggest this sustained decline in producer prices may indicate a turning point in Ghana’s inflationary trajectory. However, they caution that structural challenges in energy pricing and global commodity market volatility could still influence future trends. The data comes as businesses reassess their cost structures and sourcing strategies, with many looking to capitalize on the more stable production environment.
