Producer Price Inflation drops sharply to 18.5% in April

Producer Price Inflation (PPI) has recorded a sharp decline in April 2025, falling to 18.5% from 24.4% in March, according to fresh data released by the Ghana Statistical Service (GSS).

This marks the third consecutive monthly drop in producer inflation, reflecting a continued cooling in price pressures at the factory gate.

The 5.9 percentage point decline in the year-on-year rate was largely driven by easing inflation in the mining and quarrying (24.3%) and manufacturing (19.6%) sectors, together contributing nearly 95% of April’s producer inflation figure.

In March, these sectors recorded inflation rates of 35.4% and 22.8%, respectively.

Month-on-month, the PPI registered a deflation of 0.8%, reversing the 0.6% increase seen in March. This indicates that average factory gate prices were lower in April, suggesting that producers are beginning to receive slightly less revenue per unit of output.

Transport and storage also recorded a notable decline, dropping from 20.4% in March to 16.2% in April.

The Ghana Statistical Service highlighted the development as a positive signal for the economy, noting that lower input costs for producers could eventually result in reduced consumer prices if businesses pass the savings through the supply chain.

“This trend provides a window for stabilization and responsible investment,” the GSS noted, while urging both industry players and policymakers to take advantage of the relative price relief to stimulate growth, improve efficiency, and promote local sourcing.

However, the report also cautioned that tighter profit margins could remain a concern, even as inflation slows. Businesses are advised to reassess operational costs and cautiously consider expansion strategies in the current economic climate.

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