Ghana’s producer price inflation slowed sharply to 1.9% in December 2025, reflecting easing cost pressures at the factory gate despite uneven movements across key sectors of the economy.
Data released by the Ghana Statistical Service show the December figure represents a significant moderation compared with earlier months, pointing to relative stability in prices received by domestic producers for their goods and services. The slowdown suggests reduced inflationary pressure within the supply chain, which could gradually feed through to consumer prices if sustained.
The overall decline, however, masked divergent trends across sectors. Some production segments recorded price increases, driven largely by input costs, energy-related expenses and logistics, while others experienced price declines amid softer demand and improved supply conditions. Manufacturing, a major contributor to the Producer Price Index (PPI), showed subdued price growth, reflecting stabilising raw material costs and improved currency conditions compared with previous periods.
The mining and quarrying sector posted mixed results, with prices influenced by global commodity movements and export market dynamics. Meanwhile, utility-related production and select industrial activities recorded marginal increases, partly linked to operational and maintenance costs. Agriculture-related production continued to benefit from relatively favourable conditions, helping to contain upward price pressures in that segment.
Economists say the moderation in producer inflation could support Ghana’s broader macroeconomic recovery, especially as authorities pursue disinflation and fiscal consolidation. Lower producer inflation typically signals reduced pressure on manufacturers and service providers to pass on higher costs to consumers, although the extent of the impact depends on demand conditions and broader economic confidence.
The December data also align with tighter monetary conditions and improved currency stability toward the end of 2025, factors that helped reduce imported inflation and input price volatility. Analysts caution, however, that producer prices remain sensitive to external shocks, particularly movements in global energy prices, exchange rate fluctuations and supply chain disruptions.
Going into 2026, the trajectory of producer inflation will be closely watched by policymakers and businesses as an early indicator of cost trends, pricing behaviour and potential shifts in consumer inflation.
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