Producer price inflation in Ghana declined marginally in January two thousand and twenty-six, easing to one point six percent from one point nine percent recorded in December two thousand and twenty-five, according to data released on February eighteen by the Ghana Statistical Service.
The zero point three percentage point decline signals a continued slowdown in price pressures at the factory gate, reinforcing signs that producer-side inflation has stabilised after the sharp volatility experienced over the past two years. On a year-on-year basis, the data show that ex-factory prices of goods and services rose by one point six percent between January two thousand and twenty-five and January two thousand and twenty-six.
This marks a dramatic moderation compared with the same period a year earlier, when producer inflation stood at twenty-eight point five percent. The difference of twenty-six point nine percentage points highlights the extent to which price pressures have eased over the past twelve months, reflecting improved macroeconomic conditions, lower exchange-rate volatility and softer global commodity prices relative to their previous peaks.
Despite the annual slowdown, the data also point to renewed short-term momentum. On a month-on-month basis, producer prices rose by three point three percent in January, compared with a contraction of zero point eight percent in December. The rebound suggests that some cost pressures resurfaced at the start of the year, possibly linked to seasonal factors, energy costs or adjustments in input pricing across key sectors.
A closer look at sectoral performance shows divergent trends across the economy. Mining and quarrying, which carries the largest weight in the producer price index at forty-three point seven percent, recorded a year-on-year inflation rate of three point seven percent in January. This was higher than the three point three percent recorded in December, representing a zero point four percentage point increase. Given the sector’s importance to exports and fiscal revenues, sustained price increases in mining can have broader implications for government receipts and foreign exchange inflows.
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In contrast, the manufacturing sector, which accounts for thirty-five percent of the index, saw inflation fall sharply into negative territory. Manufacturing producer inflation declined to minus two point two percent in January from zero point one percent in December, a drop of two point three percentage points. This shift suggests easing input costs or weaker demand conditions, which may reduce pressure on consumer prices but could also signal softer margins for producers.
Utilities recorded some of the strongest price increases. Electricity and gas inflation rose significantly to fourteen point eight percent in January from six point one percent in December, indicating rising costs within the energy supply chain. Similarly, water supply, sewerage and waste management services recorded inflation of nine point nine percent, up from two point three percent in the previous month. These increases point to mounting cost pressures in essential service sectors that could eventually filter through to households and businesses.
Several service sectors continued to experience deflation. Transport and storage inflation declined further to minus six point nine percent in January from minus three point seven percent in December, extending a downward trend that has persisted in recent months. Accommodation and food service activities also recorded deeper deflation, with prices falling by minus five point four percent compared with minus three point two percent in December. Information and communication services showed mild easing, with inflation moderating to one point four percent from one point seven percent.
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Overall, the January data present a mixed picture. While annual producer inflation remains low and well below levels seen a year earlier, the strong month-on-month increase of three point three percent suggests emerging short-term cost pressures. If sustained, these pressures could influence pricing decisions across key sectors and shape the outlook for consumer inflation in the months ahead, even as broader producer price trends remain relatively contained.
