Ghana’s Producer Price Inflation (PPI) saw a notable decline in March 2025, easing to 24.4% from 27.6% recorded in February, according to fresh provisional data released by the Ghana Statistical Service (GSS). The figures reflect a 3.2 percentage point drop and signal a cautious step toward price stability within the country’s production economy.

The month-on-month change between February and March was pegged at 0.6%, highlighting steady movement rather than volatility in producer pricing across multiple sectors.

Mining Leads Despite Steep Dip

Among the industries monitored, the Mining and Quarrying sector remained the highest contributor to producer inflation, though it saw a sharp drop from 43.7% in February to 35.4% in March.

The Manufacturing sector followed, recording 22.8% — an increase from February’s 20.8%, indicating rising cost pressures in Ghana’s industrial heartland.

At the opposite end, the Information and Communication sector registered the lowest inflation rate at 4.1%, a marginal dip from February’s 4.2%, suggesting relative stability in the cost of services within the digital economy.

Sector Breakdown at a Glance

• Mining and Quarrying: 35.4% (down from 43.7%)
• Manufacturing: 22.8% (up from 20.8%)
• Construction: 15.4% (down from 15.8%)
• Accommodation and Food Services: 7.2% (down from 7.8%)
• Information and Communication: 4.1% (down from 4.2%)

The PPI serves as a critical economic indicator, measuring the average changes over time in the prices received by local producers for goods and services, covering sectors such as mining, manufacturing, electricity, water, construction, transport, and information technology.

AGI Raises Red Flag Over Rising Utility Tariffs

Despite the positive inflation data, industry players are raising alarms over the potential dampening effect of rising utility prices on production costs. Speaking to Ghana Insights, Tsonam Akpeloo, Greater Accra Regional Chairman of the Association of Ghana Industries (AGI), cautioned that recent tariff hikes could undercut the gains reflected in the falling PPI.

Under the new tariff regime, electricity prices will surge by 14.75%, while water tariffs will increase by 4.02%.

Akpeloo emphasized the urgency of policy action, stating:

“We urge the government to prioritize local industrialization and create special tariff arrangements that significantly reduce electricity costs for manufacturers. Otherwise, the benefits of the declining inflation rate may be short-lived.”

He warned that unchecked utility price increases could keep production costs high, negating the progress recorded in recent months.

Looking Ahead

While the drop in PPI offers relief for Ghana’s manufacturing and service sectors, the rising cost of essential utilities could undermine competitiveness and threaten the country’s industrial growth if left unaddressed.

As Akpeloo put it:

“All these prices are interlinked. If utility costs remain high, the falling PPI will not translate into real-world savings or enhanced competitiveness for local producers.”