By: Franklin ASARE-DONKOH
Producer Price Inflation (PPI) data released by the Ghana Statistical Service (GSS), on Wednesday, July 16, 2025 showed that the June 2025 stood at 5.9%, marking its lowest level recorded since November 2023.
The Government Statistician, Dr. Alhassan Iddrisu, presenting the data, said the figure, released by his outfit, represents a 4.2 percentage point drop compared to that of May ending 2025
Per the data available a significant 19.7 percentage point decline from the rate recorded in June 2024. It also marks the fifth consecutive month of decline in producer inflation.
According to the data released by GSS, monthly producer prices recorded a deflation of 1.4% between May and June 2025. This means that, on average, producers received lower prices for their goods and services in June compared to the previous month.
The data also pointed to continued price reductions in several key sectors. Transport costs, for instance, fell further from -4.8% in May to -7.0% in June 2025.
In the hospitality industry, hotel and restaurant prices reversed sharply from a 6.5% increase in May to a 2.7% decline in June, representing a dramatic 9.2 percentage point swing.
The Mining and Quarrying sector which stands as largest contributor to Ghana’s PPI with a 43.7% weighting, saw inflation plunge by 7.2 percentage points, from 13.7% in May to 6.5% in June 2025.
Likewise, inflation in the Manufacturing sector, which accounts for 35% of the PPI basket, dropped from 9.8% to 7.6%, representing a 2.2 percentage point reduction.
These two sectors alone were the primary drivers behind the broader decline in producer inflation. Dr. Iddrisu noted.
The Government Statistician has thus advised businesses to re-evaluate their pricing models and renegotiate contracts strategically.
“Falling costs bring opportunity, but tighter margins too. Stay ahead by innovating, not just adjusting prices.
To consumers, the GSS advised vigilance: “Buy smart, question markups, and support brands that pass savings on,” he cautioned.
Dr. Iddrisu also urged the government to maintain macroeconomic stability, stimulate production, and provide smart incentives, particularly for sectors like mining and manufacturing, to sustain growth, protect jobs, and drive demand.
