Image of a computer modeling of inflation data, by courtesy of Pexels from Pixabay

The Ghana Statistical Service has announced the latest Producer Price Inflation which saw factory gate prices rise by 3.8% in July, representing the sixth consecutive month the PPI has seen a decline this year. However, on a month-on-month basis, the rate of change between June and July 2025 was 1.6% signaling a positive outlook on prices received by producers for their goods and services relative to what was recorded in June. This marks the lowest inflation since November 2023, according to GSS.

The mining and quarrying sector saw its inflation fall by 1.9 percentage points from 6.5% in June to 4.6% in July whereas manufacturing eased by 3.6 percentage points from 7.2% to 3.6%. GSS noted that, both manufacturing and mining and quarrying accounted for the overall fall in producer inflation as they form the biggest share of activities in the productive sectors of the economy. Furthermore, other sectors saw price reduction as well with transportation and storage drop from -7.0% in June to -8.1% in July while hotel and restaurant prices remained the same with no change in the sub-sector inflation of 2.6%.

Meanwhile, the production cost for electricity and gas went up by 1.6 percentage points from 5.1% in June to 6.7% on the back of lingering debt to Independent Power Producers and the government’s struggle to find cheaper sources of fuel for the nation’s power plants which has consequently resulted in the electricity tariff increase by 2.45% as of July 1 this year announced by the Public Utilities Regulatory Commission. GSS, notwithstanding is bullish the country could see relief in the economy if the savings recorded in many sectors are felt by consumers therefore urging the government to “lock in stability, boost production, and support key sectors like mining and manufacturing with smart incentives to drive demand, protect jobs, and keep the momentum strong”. For households and consumers, the national statistics bureau encouraged close monitoring of prices for corresponding fall in retail prices as producer costs are falling; buy smart, question markups, and support brands that pass savings on, it added.