As producer costs drop for a fifth consecutive month, the Ghana Statistical Service (GSS) is urging businesses to go beyond price adjustments and rethink their approach to pricing, strategy, and innovation.

The call comes as new data shows that inflation at the producer level slowed significantly in June 2025, but the GSS wants to ensure those cost reductions translate into real relief for consumers.

According to the latest Producer Price Index (PPI) report, year-on-year producer inflation fell to 5.9% in June 2025, down from 10.1% in May, making it the lowest rate since November 2023.

On a month-to-month basis, producer prices declined 1.4%, meaning that the average prices producers received for their goods and services in June were lower than in May.

“For businesses, rethink pricing and renegotiate smartly,” the GSS advised. “Falling costs bring opportunity, but tighter margins too. Stay ahead by innovating, not just adjusting prices.”

Transport and hospitality services have already seen notable price drops. Transport inflation declined further to -7.0%, while prices in accommodation and food services swung sharply from a 6.5% rise to a 2.7% drop — a significant turnaround.

The GSS also issued a strong message to the government and consumers.

To policymakers, it recommended: “Lock in stability, boost production, and support key sectors with smart incentives to drive demand, protect jobs, and keep the momentum strong.”

And for households still navigating high costs despite falling producer prices, the GSS offered this reminder: “Watch prices closely. If producer costs are falling, retail prices should too, all else remaining constant. Buy smart, question markups, and support brands that pass savings on.”

While factory gate prices continue to decline, the real question is whether businesses will pass the benefits on to the everyday Ghanaian.