Leverage declining inflation to fast-track targeted interventions – GSS to gov’t

Producer price inflation dropped by 5.9 percentage points. It fell from 24.4% in March 2025 to 18.5% in April 2025. This marks the third month of decline.

Dr. Alhassan Iddrisu noted this slowdown offers a chance for government action. He urged the government to strengthen the industrial base and stimulate growth. “Now is the time for targeted interventions,” he said after the Producer Price Index (PPI) data release.

The GSS also suggested using sector-specific inflation data for better policies. The PPI data shows price movements in mining, manufacturing, construction, and services. Easing inflation in mining and manufacturing accounted for 94.5% of the decline.

“Sub-sector data should guide policy decisions,” Dr. Iddrisu emphasized. Understanding where inflation is cooling allows for targeted responses.

He called for public education on producer price inflation's economic effects. Transparency with businesses, consumers, and policymakers builds confidence in the economy's direction.

The government warned that falling prices might mean reduced consumer spending. They must be ready to intervene if businesses or jobs are at risk.

Businesses were encouraged to reassess their costs and pricing models. Slower price increases allow companies to offer competitive prices and attract customers.

The GSS advised private sector investment plans should resume cautiously. Stable factory gate prices help reduce unpredictability in input costs.

They also recommended local sourcing of inputs to improve cost efficiency and support domestic industries.

Business owners should discuss better loan terms with financial institutions due to declining inflation trends.

At the household level, GSS urged consumers to save more and avoid panic-buying as prices stabilize.

Consumers should report unfair price hikes despite decreasing producer prices, promoting transparency across the value chain.

They advised avoiding high-interest loans and investing in small side jobs or farming activities now that prices are stabilizing.

These recommendations come as year-on-year inflation reached 21.2% in April 2025, down from 22.4% in March 2025—marking five months of easing inflation rates.

Additionally, the cedi appreciated about 16% against major currencies like the dollar according to Bloomberg reports.

In May, Bloomberg named the cedi ‘best performing currency’ globally.

As of May 20, 2025, on the interbank market, one US dollar traded at GH¢