Factory-Gate Prices Jump 3.3%

Ghana’s producer price inflation slowed modestly in January 2026, but a sharp month-on-month rise in factory-gate prices signals renewed short-term cost pressures for businesses.

According to data released by the Ghana Statistical Service (GSS), annual producer inflation eased to 1.6% in January from 1.9% in December. The Producer Price Index (PPI) rose to 274.9, up from 266.0 the previous month, reflecting changes in the average prices received by domestic producers.

However, the more striking development was the 3.3% month-on-month increase in producer prices, reversing a 0.8% contraction recorded in December. The rebound points to renewed short-term cost pressures at the factory gate, which could eventually filter into consumer prices if sustained.

Mining and quarrying, the largest component of the index with a 43.7% weight, played a central role in the January surge. On an annual basis, inflation in the sector edged up to 3.7%, from 3.3% in December. On a monthly basis, mining prices jumped 7.0%, swinging sharply from a 1.4% decline the previous month and contributing the largest share to the overall increase in producer prices.

Manufacturing, the second-largest sector with a 35% weight, acted as a drag on the annual headline figure. Producer inflation in manufacturing fell into negative territory at -2.2% year-on-year, down from 0.1% in December. The decline reflects broad-based softness in factory-gate prices across segments of the sector, helping to contain overall annual inflation.

Utilities recorded some of the strongest annual increases. Electricity and gas inflation accelerated to 14.8% year-on-year, up from 6.1% in December, while water supply, sewerage and waste management rose sharply to 9.9% from 2.3%.

Meanwhile, transport and storage continued its downward trend, with producer inflation falling further to -6.9% year-on-year, compared to -3.7% in December, suggesting persistent weakness in that segment.

The Producer Price Index tracks average changes in prices received by domestic producers, excluding taxes and retail mark-ups. It is widely regarded as an early indicator of cost pressures that may eventually influence consumer inflation trends.

The GSS noted that the index is compiled from prices of 2,639 items collected monthly from 603 domestic producers, using March 2020 to February 2021 as the base period.

While the annual rate signals continued moderation in producer inflation, the sharp monthly rise highlights emerging short-term pressures that policymakers and businesses will monitor closely in the months ahead.