Producer Price Inflation drops to 10.2% in May 2025

Ghana’s Producer Price Inflation (PPI) fell sharply in May 2025, dropping to 10.2% from 18.5% in April 2025, according to the latest data from the Ghana Statistical Service.

This marks the fourth consecutive monthly decline in producer inflation and signals a cooling in price pressures at the factory gate.

The fall in the year-on-year rate represents a significant 8.3 percentage point drop, driven largely by easing price growth in two key sectors: mining and quarrying, which contributed 13.7 points to May's inflation, and manufacturing, which added 10.1 points.

On a month-on-month basis, producers experienced deflation of 0.8%, indicating that average factory gate prices were lower in April than in March.

This is a reversal from the 4.2% rise recorded in April, and suggests that producers are beginning to receive less revenue per unit of goods and services sold.

The decline in producer inflation offers a potential boost to the broader economy.

According to the Statistical Service, reduced input costs for producers could eventually translate to lower consumer prices if the reductions are passed along the supply chain.

SP/MA

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