Ghana’s Producer Price Inflation (PPI) continued its downward trend for the third consecutive month, falling by 5.9 percentage points—from 24.4% in March 2025 to 18.5% in April 2025. The latest data, released by the Ghana Statistical Service (GSS), reflects a notable easing of cost pressures in key sectors of the economy.
The decline was largely driven by lower inflation in the mining and manufacturing sectors, which together accounted for 94.5% of the overall slowdown, according to the GSS.
Economist Dr. Alhassan Iddrisu welcomed the development, describing it as a timely opportunity for the government to act decisively to boost industrial growth. “Now is the time for targeted interventions,” he stated. “This slowdown presents a window for strengthening the industrial base and stimulating economic expansion.”
Dr. Iddrisu also emphasized the importance of sector-specific analysis. “Sub-sector data should guide policy decisions. Understanding where inflation is cooling allows for targeted responses that yield more effective results.”
He further called for increased public education on the implications of producer price inflation, urging greater transparency among businesses, consumers, and policymakers to bolster confidence in the economy’s trajectory.
Policy and Business Implications
While the slowdown in inflation is a positive sign, the government cautioned that it could also signal sluggish consumer demand, which may affect business revenues and employment. Authorities stressed the need to remain vigilant and ready to intervene should economic activity begin to contract.
In response to the easing inflation, businesses were advised to re-evaluate their cost structures and pricing strategies. Lower price increases provide an opportunity to remain competitive and attract price-sensitive consumers.
The GSS encouraged private sector investment to cautiously resume, noting that stabilizing factory gate prices reduce input cost volatility—an important factor for planning and budgeting. Businesses were also urged to pursue local sourcing of inputs to improve cost efficiency and support domestic industries.
Additionally, entrepreneurs were advised to explore better loan terms with financial institutions, as declining inflation typically supports lower interest rates.
Household Guidance
At the household level, the GSS urged consumers to save more and avoid panic-buying as prices begin to stabilize. They also recommended avoiding high-interest loans and considering small-scale farming or side businesses to build financial resilience.
Consumers were encouraged to report unjustified price increases despite falling producer prices to ensure accountability and fairness across the supply chain.
Broader Economic Indicators
The latest PPI figures align with broader macroeconomic improvements. Year-on-year inflation fell to 21.2% in April 2025, down from 22.4% in March, marking five consecutive months of easing inflation.
Adding to the optimism, the Ghanaian cedi has appreciated by approximately 16% against major currencies, including the US dollar, according to Bloomberg. In May, Bloomberg named the cedi the “best performing currency” in the world.
As of May 20, 2025, the US dollar was trading at GH¢[rate to be inserted] on the interbank market.
These developments suggest a cautiously optimistic outlook for Ghana’s economy, with renewed confidence in price stability and currency performance. Stakeholders across government, industry, and households are being called upon to seize this opportunity to lay a stronger, more resilient economic foundation.
