Producer Inflation Drops Sharply to 1.4% in October 2025
By Praisebell Rosemond Larbi
Producer Price Inflation (PPI) fell significantly to 1.4% in October 2025, a decline of 1.8 percentage points from the 3.2% recorded in September, according to the latest data released by the Ghana Statistical Service (GSS). The sharp drop reflects easing cost pressures across key industrial sectors, driven largely by improved stability in mining, transport, and selected manufacturing activities.
The Mining and Quarrying sector, which carries the heaviest weight of 43.7% in the PPI basket, recorded a notable 4.3 percentage point decline in producer inflation. The sector’s inflation rate dropped from 5.0% in September to 0.7% in October 2025, signalling a slowdown in cost increases within Ghana’s mineral extraction value chain.
Manufacturing, which accounts for 35% of the PPI composition, saw producer inflation rise modestly from 1.7% to 2.5% over the same period. Despite this uptick, the sector’s current inflation level remains far below the 22.7% recorded in October 2024, reflecting a significant moderation in input costs for manufacturers.
Transport and Storage, another key subsector, continued its deflationary trend. Producer inflation fell further from -8.2% in September to -8.8% in October 2025, indicating a continued decline in prices within the sector as operators benefit from lower operational costs and improved efficiencies.
In its advisory, the GSS urged businesses to take advantage of the lower input cost environment by doubling down on operational efficiency. It encouraged firms to streamline processes, reduce waste, and boost productivity to ensure that “every cedi works harder” within their operations.
The Service also recommended that government channel support toward investments that deliver high impact specifically incentives for enterprises that are expanding capacity, upgrading technology, or creating sustainable employment. Addressing structural issues, such as persistent energy constraints and logistical bottlenecks, was also highlighted as essential to lowering production costs in the medium term.
For households and consumers, the GSS advised more intentional spending behaviour. It recommended comparing prices, seeking value, and patronising businesses that reflect lower production costs in their final prices, actions that can help consumers navigate the evolving price environment more effectively.
