Ghana’s Producer Price Inflation closed 2025 at 1.9 per cent, reflecting easing cost pressures at the factory gate and reinforcing the country’s broader disinflation trend, according to data released by the Ghana Statistical Service. 

The data mattered because producer prices often shape future movements in consumer prices and business costs.

The December 2025 rate represented the year-on-year change in prices of goods and services received by producers compared with December 2024. 

It suggested that price pressures facing manufacturers and service providers remained subdued as the year ended.

On a month-on-month basis, producer prices declined by 0.8 per cent between November and December. 

This showed that average prices at the producer level fell in the final month of the year, offering some relief to businesses after earlier cost increases.

A breakdown of the data showed differing trends between industry and services. Industrial PPI rose to 2.1 per cent in December 2025, up from 1.6 per cent in November, marking a 0.5 percentage point increase within a month.

The rise pointed to a modest increase in costs across manufacturing, mining and utilities toward the end of the year. 

Despite the increase, the industrial inflation rate remained relatively low compared with levels recorded in previous years.

An economist at a local research firm said the uptick was manageable and did not signal renewed inflationary pressure.

“Industrial price growth was still contained and reflected seasonal and operational factors rather than structural cost shocks,” he said.

Services inflation

In contrast, services recorded a much lower annual inflation rate of 0.6 per cent in December 2025. 

This highlighted weaker price pressures in areas such as transport, hospitality and other service activities.

On a month-on-month basis, service prices rose marginally by 0.2 per cent between November and December. 

The slight increase suggested relative stability in service sector costs, with limited pass-through to overall producer inflation.

A senior analyst said the muted services inflation showed that demand-side pressures in the economy remained modest.

“Businesses in the services sector appeared cautious on price increases as competition and consumer sensitivity remained high,” he said.

Inflation outlook

The subdued PPI outturn aligned with the broader disinflationary trend in the economy. Earlier in the month, the Government Statistician, Dr Alhassan Iddrisu, announced that consumer inflation had eased to a multi-year low of 5.4 per cent.

The easing of both producer and consumer inflation pointed to improving macroeconomic stability after a period of elevated price pressures. 

It also strengthened expectations that inflation would remain on a downward path into 2026.

According to analysts, the slowdown in producer price growth boded well for the year ahead because lower factory gate costs typically translated into more stable retail prices. One analyst said the trend was supported by relative stability in the Cedi, improved domestic production and softer global commodity prices.

“These factors were likely to help keep inflation in check if conditions remained unchanged,” he said.