Ghana's year-on-year Producer Price Inflation (PPI) slowed to 3.5 percent in June 2026. This represents a notable decrease from the 5.8 percent recorded in the same period last year. The latest provisional figures also show a month-on-month decline of 3.7 percent in producer prices between May and June 2026.
This reduction in producer inflation indicates that the rate at which domestic producers are increasing their prices for goods and services has significantly moderated. The decline was more pronounced than the 1.4 percent decrease observed in the previous month. This trend suggests a broader easing of cost pressures on businesses across various economic sectors.
The Producer Price Index (PPI) measures the average change over time in prices received by domestic producers. It covers industry, excluding construction, as well as the construction and services sectors. This indicator is crucial for understanding the health of Ghana's economy. It often provides an early signal of future consumer inflation trends, as producers' costs eventually pass on to consumers. The current decline aligns with broader efforts by the Bank of Ghana to manage inflation and stabilize the economy.
According to data from the Ghanaian Times, the Industrial Producer Price Index (I-PPI) recorded an annual inflation rate of 3.3 percent in June 2026. This marks a 2.7 percentage-point decline from the 6.0 percent recorded in May. On a monthly basis, industrial producer prices fell by 4.2 percent. This suggests that industrial output prices are cooling down, which could lead to more stable consumer prices in the coming months.
Within the manufacturing sector, 14 of 23 major industry groups posted inflation rates above the sub-sector average of 3.5 percent. The manufacture of fabricated metal products, excluding machinery and equipment, recorded the highest inflation rate at 26.3 percent. This was followed by the manufacture of leather and related products at 19.1 percent. Conversely, the manufacture of other non-metallic mineral products recorded the lowest inflation rate of minus 2.3 percent, indicating price reductions in that segment. In the mining and quarrying sub-sector, the extraction of crude oil and natural gas recorded an inflation rate of 5.0 percent. Inflation for mining of metal ores dropped sharply from 6.5 percent in May to 0.7 percent in June.
The construction sector recorded a year-on-year producer inflation rate of 4.6 percent in June, an increase from 4.3 percent in May. Month-on-month, construction producer prices declined marginally by 0.2 percent. Construction of utility projects recorded the highest inflation rate within the civil engineering group at 21.7 percent. Other specialised construction activities also increased to 9.5 percent from 9.1 percent in May. Electrical, plumbing, and other construction installation activities remained unchanged at 4.3 percent.
The services sector recorded the lowest annual producer inflation among the three broad sectors at 2.5 percent. However, it registered a monthly increase of 0.5 percent between May and June. Within the services sector, land transport recorded the highest inflation rate of 21.4 percent. Postal and courier services posted the lowest rate of 1.7 percent. Accommodation inflation increased significantly to 11.6 percent from 3.1 percent in May. Accommodation and food service activities recorded an overall inflation rate of 10.8 percent. Motion picture, video, and television production, sound recording, and music production registered the highest inflation rate within the information and communication group at 87.9 percent. This highlights sustained price increases in that segment despite the general moderation in producer inflation.
This overall decline in producer inflation is a positive sign for Ghana's economic stability. It suggests that the cost of doing business is becoming more manageable. This could lead to lower consumer prices and improved economic growth in the medium term. Policymakers will closely monitor these trends to ensure continued price stability and support sustainable economic recovery. Businesses may find relief in reduced input costs, potentially boosting profitability and investment.