Accra: The year-on-year producer inflation for July 2025 slowed to 3.8 per cent, down from 5.8 per cent in June, according to the Ghana Statistical Service on Wednesday. This marks the sixth consecutive monthly decline and the lowest rate since November 2023.
According to Ghana News Agency, month-on-month, producer prices rose by 1.6 per cent between June and July 2025. This indicates that, on average, producers charged slightly more for their goods and services in July compared to June, even though the overall pace of annual price growth is easing, as per the statement.
The mining and quarrying sector, the largest with a weight of 43.7 per cent, experienced a notable slowdown. Inflation in this sector fell from 6.5 per cent in June to 4.6 per cent in July, a reduction of 1.9 percentage points. Similarly, the manufacturing sector, which accounts for 35 per cent of the PPI, saw prices drop from 7.2 per cent to 3.6 per cent, shedding 3.6 percentage points in one month. These two sectors together were the primary drivers of the overall fall in producer inflation.
The statement highlighted that the combined weight of the mining and quarrying, and manufacturing sectors meant that changes had an outsized impact on the national PPI. Additionally, some sectors experienced outright price drops. Transport costs declined further from -7.0 per cent in June to -8.1 per cent in July, while prices in accommodation and food services remained steady at 2.6 per cent.
The statement suggested that if these cost reductions were passed through to consumers, the benefits could be real and immediate. Lower costs at the production stage create an opportunity for prices in shops, markets, and services to ease, providing tangible relief to households.
The statement urged businesses to leverage lower input costs to innovate and stay competitive rather than only adjusting margins. Meanwhile, it called on the government to maintain stability while supporting mining and manufacturing with targeted incentives to boost production, protect jobs, and sustain the downward inflation trend. It also advised households and consumers to monitor prices closely because when producer costs drop, retail prices should follow.