Ghana closed 2025 with moderate producer price pressures, as Producer Price Inflation (PPI) rose slightly on an annual basis but declined month-on-month, signalling short-term relief for domestic producers, according to the latest data from the Ghana Statistical Service.
The December 2025 PPI report, released on January 21, 2026, shows that year-on-year producer inflation increased to 1.9 per cent, up from 1.3 per cent in November 2025. However, on a month-on-month basis, producer prices fell by 0.8 per cent, reflecting easing cost pressures at the factory gate.
Presenting the figures, Government Statistician Alhassan Iddrisu explained that the Producer Price Index stood at 266.0 in December, compared with 268.1 in November and 261.1 a year earlier, underscoring a slower pace of price increases over the past 12 months.
Mining Sector Drives Annual Increase
A closer look at the data reveals that the Mining and Quarrying sector—which accounts for 43.7 per cent of the PPI basket—was the main driver of the year-on-year rise. Inflation in the sector climbed from 2.3 per cent in November to 3.3 per cent in December 2025, contributing one full percentage point to overall producer inflation.
By contrast, the Manufacturing sector, which holds a 35 per cent weight, recorded a sharp slowdown. Producer inflation in manufacturing eased from 0.5 per cent to 0.1 per cent, subtracting 0.4 percentage points from overall inflation and reflecting weaker cost pressures across several industrial sub-sectors.
Sectoral Trends Remain Mixed
Other sectors showed divergent trends. Electricity and gas recorded relatively high producer inflation of 6.1 per cent, while Construction posted 1.9 per cent. The Transport and Storage sub-sector remained in deflationary territory, although the rate narrowed significantly from -10.2 per cent in November to -3.7 per cent in December, pointing to a gradual recovery.
Service-related activities, including accommodation and food services, continued to experience price declines, while information and communication services posted modest gains.
On a month-on-month basis, falling prices in Mining and Quarrying (-1.4%) and Manufacturing (-0.6%) were the main contributors to the overall decline in producer prices in December, reinforcing signs of short-term cost moderation for producers.
What It Means for the Economy
The Ghana Statistical Service noted that the combination of low annual producer inflation and declining monthly prices provides room for businesses to improve efficiency and reinvest savings into technology, skills development, and supply-chain resilience. Consumers were encouraged to make price-conscious spending decisions, while policymakers were urged to focus on reducing structural production costs—particularly energy, transport, and logistics bottlenecks.
As Ghana enters 2026, the December PPI data suggest a cautiously positive outlook at the producer level, with easing short-term price pressures offering some relief even as sector-specific challenges—especially in mining and utilities—persist.
The full Producer Price Index and Inflation report for December 2025 has been published by the Ghana Statistical Service, alongside detailed datasets, infographics, and analytical notes .
