AGI welcomes fall in Producer Price Inflation as sign of economic stability
By Ernest Afram
The Association of Ghana Industries (AGI) has expressed optimism about Ghana’s economic outlook following a significant decline in producer price inflation (PPI). The April 2025 figures released by the Ghana Statistical Service show a drop in PPI to 18.5 percent, down from 24.4 percent recorded in March.
This marks the third consecutive monthly decline and signals a continued easing of cost pressures on manufacturers and producers across the country.
Chief Executive Officer of AGI, Seth Twum Akwaboah, described the development as a positive sign of macroeconomic stability. In an interview with the media, he attributed the drop in inflation to recent improvements in the cedi’s performance and a general push by businesses and traders to reduce prices.
“For some time now, we’ve experienced stability in the economy, we’ve seen the cedi gaining some weight, and there has been encouragement to companies, businesses, and traders to reduce prices. As price reductions continue, we expect to see a further decline in inflation. So I think it’s a reflection of the improved macroeconomic conditions that we are having, and we welcome it,” he said.
He further emphasized the broader impact of such improvements on the business environment. According to him, a stable economic climate fosters confidence, enabling businesses to plan better, expand operations, and employ more people.
“When the environment is stable, businesses can plan. Based on those plans, they can expand, and when they expand, they employ more people. It’s very good. Of course, it’s not been that long, but we are monitoring. The early signs are good, and if we’re able to sustain it, I can assure you that business confidence will go up, and when confidence goes up, investment will follow,” he added.
The AGI is urging the government to maintain prudent economic policies to help sustain the gains and ensure long-term growth for local industries. Producer price inflation measures the average change over time in the prices received by domestic producers for their output. It is a key indicator for understanding inflationary trends at the production level before they affect consumer prices.
