Ghana’s producer inflation rate recorded a sharp increase in May, rising to 5.8 percent from 2.7 percent in April, according to the latest figures released by the Ghana Statistical Service.
The increase was largely driven by higher costs in the mining and quarrying, transportation, and water supply sectors, which recorded some of the highest inflation rates during the period.
Data from the Statistical Service showed that mining and quarrying led the way with an inflation rate of 11 percent, followed by water supply, sewerage and waste management at 10.2 percent. Transportation and storage recorded 7.7 percent, while electricity and gas posted inflation of 6.9 percent.
Construction also experienced rising costs, recording inflation of 4.3 percent, while accommodation and food services registered 2.9 percent.
Meanwhile, manufacturing, one of Ghana’s largest productive sectors, saw a relatively modest increase of just 0.7 percent.
Despite the rise in annual producer inflation, there was some positive news for businesses. Producer prices actually declined by 1.4 percent between April and May, suggesting that short-term cost pressures may be easing.
The Ghana Statistical Service has advised businesses to adopt strategies such as bulk purchasing and forward contracts to protect themselves against future increases in production costs.
The Service also urged government to closely monitor inflation trends, especially within the mining, transport and manufacturing sectors, to prevent rising costs from spreading through supply chains.
Producer Price Inflation (PPI) measures changes in the prices producers receive for their goods and services and is often seen as an early warning sign of future consumer price increases.
Economists and policymakers closely watch PPI data because rising production costs can eventually lead to higher prices for consumers.
While the latest figures point to stronger annual inflationary pressures, the monthly decline in producer prices could offer some hope that cost increases may begin to moderate if the trend continues in the coming months.
