The Ghana Statistical Service (GSS) has announced that the Producer Price Inflation (PPI) rate declined for the sixth consecutive month in July 2025, reaching 3.8 percent — the lowest level recorded in the past 20 months.
According to the latest data, the July figure represents a sharp reduction of 2.0 percentage points compared to the 5.8 percent rate in June 2025. On a year-on-year basis, the drop is even more striking, with a 25.3 percentage point fall from the 29.1 percent recorded in July 2024.
The downward trend is being driven largely by developments in two key sectors: Mining and Quarrying, and Manufacturing.
The Mining and Quarrying sector, which carries the heaviest weight in the PPI index at 43.7 percent, saw its inflation rate slip from 6.5 percent in June to 4.6 percent in July, representing a 1.9 percentage point decline.
Similarly, the Manufacturing sector — accounting for 35 percent of the index — recorded an even steeper slowdown, with its rate tumbling from 7.2 percent in June to 3.6 percent in July, a drop of 3.6 percentage points. Together, these two sectors were the main drivers of the overall decline in producer inflation.
Despite the sharp slowdown in the year-on-year index, the GSS data shows that average producer prices still went up by 1.6 percent between June and July 2025. This suggests that prices are rising at a slower pace, but not falling across the board.
Transport and related services continue to see deflationary trends, with costs falling from -7.0 percent in June to -8.1 percent in July. The Hotels and Restaurants sector remained unchanged, holding steady at 2.6 percent.
The continued fall in producer inflation highlights a shift in the cost structure facing businesses.
Analysts note that if these lower production costs filter through to the consumer market, they could help ease the pressure of rising living costs on households.
