Producer Price Inflation falls sharply to 18.5% in April

Ghana’s Producer Price Inflation (PPI) fell sharply in April 2025. It dropped to 18.5% from 24.4% in March. This is the third consecutive monthly decline in producer inflation.

The decrease signals a cooling of price pressures at the factory gate. The year-on-year rate fell by 5.9 percentage points. This drop was mainly due to lower price growth in two sectors: mining and quarrying, and manufacturing.

Mining and quarrying contributed 10.6 points to April’s inflation. Manufacturing added another 6.9 points. Together, these sectors made up nearly 95% of the month’s inflation rate.

On a month-to-month basis, producers experienced deflation of 0.8%. This means average factory gate prices were lower in April than in March. This is a change from the 0.6% rise seen in March.

Mining and quarrying saw the largest decline in year-on-year inflation, dropping from 35.4% to 24.3%. The manufacturing sector also decreased from 22.8% to 19.6%. Additionally, transport and storage inflation fell from 20.4% to 16.2%.

The decline in producer inflation could benefit the broader economy. Lower input costs for producers may lead to reduced consumer prices if passed along the supply chain.

However, there are warnings about tighter profit margins for producers despite slowing inflation. Businesses should reassess costs and explore local sourcing opportunities.

The Ghana Statistical Service called this trend “a window for stabilization.” They urged policymakers and industry players to use this slowdown for sustainable economic growth.