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Producer Price Inflation falls sharply to 18.5% in April

by Hamdia Mohammed
May 22, 2025
in Business, Economy
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Producer Price Inflation falls sharply to 18.5% in April
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Ghana’s Producer Price Inflation (PPI) fell sharply in April 2025, dropping to 18.5% from 24.4% in March, according to the latest data from the Ghana Statistical Service.

This marks the third 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 5.9 percentage point drop, driven largely by easing price growth in two key sectors: mining and quarrying, which contributed 10.6 points to April’s inflation, and manufacturing, which added 6.9 points.

Together, these sectors accounted for nearly 95% of the month’s inflation rate.

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 0.6% rise recorded in March and suggests that producers are beginning to receive less revenue per unit of goods and services sold.

Across industries, mining and quarrying recorded the most notable decline in year-on-year inflation, falling from 35.4% in March to 24.3% in April.

The manufacturing sector also saw a drop from 22.8% to 19.6% over the same period.

The transport and storage sector saw its inflation rate decline from 20.4% to 16.2%.

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.

However, the report also warns that while inflation is slowing, producers may face tighter profit margins.

Businesses are encouraged to take advantage of the relative price stability to reassess costs, explore local sourcing, and cautiously resume expansion plans.

The Ghana Statistical Service described the trend as “a window for stabilization and responsible investment,” urging policymakers and industry players to leverage the slowdown to build momentum for sustainable economic growth.

Source: Citinewsroom.com
Tags: AprilGhana NewsPPI
Hamdia Mohammed

Hamdia Mohammed

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