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Producer Price Inflation falls sharply to 10.25% in May 2025, lowest since November 2023

Wed, Jun 18 2025 2:39 PM
in Business, Ghana General News
producer price inflation falls sharply to 10 25 in may 2025 lowest since november 2023
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The year-on-year producer price inflation in ex-factory prices for all goods and services reduced drastically to 10.2% in May 2025 from 18.5% in April 2025.

This is the lowest rate recorded since November 2023(1.7%)

It also means that the average prices that producers received for their goods and services fell by 8.3.% in May 2025 from April 2025.

The two most important contributors to the decline of producer price inflation in May 2025 were Mining and Quarrying (10.6 percentage points) and Manufacturing (9.5 percentage points), both accounting for 78.7% of PPI.

The two sectors are key to Ghana’s industrial growth. Therefore, the Ghana Statistical Service stated that this presents a window for stabilization, investment, and responsible spending.

The GSS alluded that the overall outlook appears optimistic, as producer inflation is downward, and most sectors are experiencing price stability or declines.

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 It promised to continue to track price trends closely and provide timely updates to support informed decision-making by the public, businesses, and government.

Businesses

For businesses, the GSS called for a review of the cost structure and adjust prices to remain competitive as input prices decline.

It also urged them to resume paused investments or expansion plans, supported by a more stable pricing environment.

Again, it advised them to engage financial partners to renegotiate or secure better loan terms due to lower input inflation.

Government

With regard to government, it called for the fast-tracking of strategic initiatives like the Gold Board and Agriculture for Transformation Agenda to boost exchange rate stability and import substitution.

It also advocated the use of detailed sub-sector data to guide inflation control, industry, and trade policies.

Consumers and Households

For consumers and households, the GSS urged them to save more as prices are rising slowly or even falling.

They were also advised to avoid panic buying; shop wisely and avoid unnecessary stockpiling.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.

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