The Producer Price Inflation saw another period of decline in May on the back of stable price conditions in most sectors as the Ghanaian economy begins to make a comeback from years of exchange rate volatility, high inflation and a debt restructuring programme that pushed bondholders to take haircuts on their investment. The Ghana Statistical Service (GSS) in their presentation of the PPI figures for the month observed a significant reduction from 18.5% in April 2025 to 10.2%, a drop by 8.3 percentage points. For the GSS, the current rate marked “the lowest recorded since November 2023” which would bring relief to consumers but producers and manufacturers may face tighter margins and more competition.

Speaking at a news conference to present the GSS findings, Government Statistician Dr. Alhassan Iddrisu noted that the Mining and Quarrying and Manufacturing subsectors were the two of the most important contributors to the decline of PPI in May both of which accounted for 78.7% of PPI. “The two sectors are key to Ghana’s industrial growth. This presents a window for stabilisation, investment, and responsible spending”, he said.

The Mining and Quarrying subsector was broken into five sub-groups each contributing to the drop in PPI within the sub-sector as follows; mining support service activities (61.8%), mining of metal ores (39.9%), mining less crude oil (39.9%), other mining and quarrying (-8.9%), and extraction of crude and natural gas (-18.0%). Other top contributors to the PPI included electricity and gas, construction, accommodation and food service activities, and transportation and storage among others recording a year-on-year rate of 8.9%, 7.4%, 6.5% and -4.8% respectively. However, on a month-on-month basis, the economy saw a producer price deflation of 4.2% between April and May which signified a period where the average prices that producers received for goods and services fell by 4,2% in May as compared to April this year.

The PPI was calculated based on a fixed basket of products made up of 2,639 items from 603 domestic producers each month using data on prices of the items. These are factory gate prices and exclude sales and excise taxes, government subsidies, and other costs incurred by other intermediaries and consumers.