Ghana’s Producer Price Inflation plummets to 3.8% in July 2025

Latest data from the Ghana Statistical Service (GSS) shows the Producer Price Inflation (PPI) rate has fallen for the sixth consecutive month, reaching a 20-month low of 3.8% in July 2025.

This significant decline represents a 2.0 percentage point drop from the 5.8% recorded in June. It is also a remarkable 25.3 percentage point decrease from the PPI rate in July 2024.

The sharp decline in the PPI is primarily attributed to the two largest sectors in the index, namely Mining and Quarrying and Manufacturing.

The Mining and Quarrying sector, which holds the largest weight in the PPI at 43.7%, saw its inflation rate decrease by 1.9 percentage points, from 6.5% in June to 4.6% in July.

The Manufacturing, making up 35% of the PPI, also experienced a significant easing, with its inflation rate shedding 3.6 percentage points, falling from 7.2% to 3.6%. These two sectors alone accounted for the majority of the fall in the overall producer price inflation rate.

The data also shows a month-on-month increase of 1.6% in the average prices received by producers between June and July 2025. This indicates that while the rate of price increases is slowing, prices are still rising, but at a much slower pace.

Interestingly, some sectors are even experiencing falling prices. Transport costs dropped further from -7.0% in June to -8.1% in July, and prices in the Hotel and Restaurant sector remained stable with no inflation change at 2.6%.

This sustained downward trend in producer prices offers a positive sign for the economy. If these savings are passed on to consumers, it could lead to a real and tangible reduction in the cost of living, providing much-needed relief to households.

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