Ghana’s Producer Price Inflation (PPI) recorded a sharp decline in April 2025, falling to 18.5% from 24.4% in March, according to new figures released by the Ghana Statistical Service.
This marks the third consecutive monthly drop, signalling a continued easing of price pressures at the factory gate.
The year-on-year decline of 5.9 percentage points was primarily driven by moderating inflation in the mining and quarrying and manufacturing sectors.
Mining and quarrying contributed 10.6 percentage points to the April rate, while manufacturing added 6.9 points—together accounting for nearly 95% of the month’s producer inflation.
On a month-on-month basis, producers experienced a deflation of 0.8%, indicating that average factory gate prices were lower in April than in March.
This contrasts with the 0.6% monthly increase recorded in March and reflects reduced revenues per unit of output.
Year-on-year inflation in the mining and quarrying sector dropped from 35.4% to 24.3%, while the manufacturing sector also saw a fall from 22.8% to 19.6%.
The transport and storage sector recorded a decline from 20.4% to 16.2%.
The Ghana Statistical Service noted that, “reduced input costs for producers could eventually translate to lower consumer prices if the reductions are passed along the supply chain.”
This development, it said, may offer a potential boost to economic activity if properly leveraged.
However, the Service cautioned that the slowdown in inflation also presents challenges for businesses, particularly in terms of tighter profit margins.
“This is a window for stabilisation and responsible investment,” it stated, urging policymakers and industry stakeholders to use the period of relative price stability to reassess operational costs, explore local sourcing, and cautiously resume expansion efforts to sustain long-term economic growth.
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