Producer inflation drops to 3.5% in June

Ghana’s producer price inflation declined significantly to 3.5 per cent in June 2026 from 5.8 per cent in May, reflecting a broad moderation in price pressures at the production level, the Ghana Statistical Service (GSS) has reported.

The latest Producer Price Index (PPI) data showed that the decline was largely influenced by a sharp reduction in inflation within the mining and quarrying sector, which carries the highest weight in the producer price basket.

On a month-on-month basis, producer prices fell by 3.7 per cent in June 2026 compared with May, representing one of the strongest monthly declines in recent periods and indicating a slowdown in short-term cost pressures faced by producers.

Releasing the June 2026 Producer Price Index and Producer Inflation report, Government Statistician Dr. Alhassan Iddrisu said the figures reflected a major shift in producer pricing trends.

“In June 2026, year-on-year producer inflation was 3.5%. Year-on-year simply means comparing June 2026 to June 2025. So on average, producers were charging 3.5% more than in June 2025,” he said.

He explained that the latest annual rate represented a 2.3 percentage point decline from the 5.8 per cent recorded in May 2026.

“Month-on-month, which compares June 2026 to just a month before, prices actually fell by 3.7%. Producers on average charged less in June than in May 2026,” he explained.

Dr. Iddrisu attributed the overall decline largely to developments within the mining and quarrying sector, which recorded a substantial reduction in inflation during the period.

“What drove this? One word, mining. Mining and quarrying is our largest sector, and its yearly rate dropped sharply from 11% in May 2026 to just 2.6% in June 2026. That single shift pulled the whole index down,” the Government Statistician remarked.

Despite the decline in the overall producer inflation rate, some sectors continued to experience significant price pressures. Manufacturing inflation increased from 0.8 per cent in May to 3.5 per cent in June, while the electricity and gas sector recorded an annual producer inflation rate of 12.5 per cent.

The transport and storage sector also recorded elevated producer inflation at 10 per cent, with accommodation and food services registering 10.8 per cent during the period.

Dr. Iddrisu cautioned that the fall in overall producer inflation should not be interpreted as a complete elimination of cost pressures across the economy.

“The pressure didn’t disappear, it shifted,” he stated.

He encouraged businesses to use the current environment of softer producer prices to strengthen efficiency and manage production costs more effectively.

“Businesses, improve productivity, lock in your input costs while prices are soft,” Dr. Alhassan Iddrisu mentioned.

He further urged government to continue implementing measures that support economic stability while paying close attention to sectors recording higher inflation.

“Government, maintain macroeconomic stability and keep a close watch on energy and transport,” Dr. Alhassan Iddrisu admonished.

For households, the Government Statistician noted that the decline in producer inflation may not immediately result in lower prices at retail outlets.

“Households, expect mixed signals at the shops,” Dr. Alhassan Iddrisu emphasized.

The latest data suggests that while production cost pressures have eased overall, businesses and policymakers will need to monitor sector-specific developments, particularly in energy, transport and manufacturing, to sustain the current inflation moderation trend.