Ghana’s producer price inflation fell to 24.4% in March 2025, down from 27.6% the previous month, reflecting a broad slowdown in cost pressures across several key economic sectors.
Data released by the Ghana Statistical Service indicate a 3.2 percentage point decline, with the largest reductions occurring within the mining and industrial sectors.
Month-on-month, producer prices rose by just 0.6% in March, a marked deceleration from the 1.5% increase recorded in February. These figures suggest a continuing moderation in input costs at the producer level, which may signal easing inflationary trends further along the supply chain.
The industrial sector, excluding construction, recorded the steepest drop in year-on-year inflation, falling from 42.9% in February to 36.3% in March. Within this segment, the mining and quarrying sub-sector experienced a sharp decline to 35.4%, down from 44.6%. However, inflation remained elevated in mining support services, where the rate stood at 67.3%. In contrast, the extraction of crude oil and natural gas posted a much lower rate of 2.5%, contributing to the overall moderation in industrial inflation.
Manufacturing, another major component of the industrial sector, saw inflation rise slightly to 22.8% from 20.8%. Despite the modest increase, some manufacturing categories reported significantly higher inflation. Basic metals recorded 47.9%, motor vehicles and trailers stood at 35.8%, and leather products registered 32.5%, reflecting uneven cost dynamics across the sub-sector.
In utilities, inflation in electricity and gas dropped to 5.1%, compared to 9.7% in February. Water supply, sewerage, and waste management services maintained relatively stable inflation at 4.8%.
The construction sector also recorded a slight decrease in inflation, with the year-on-year rate easing to 15.4% from 15.8%. Specialized construction activities posted the highest inflation at 17.9%, while building construction remained the most stable at 14.3%, possibly reflecting more consistent pricing for core materials such as cement and steel.
Inflation in the services sector slowed to 7.2% in March, compared to 7.8% in the previous month. Despite the overall decline, specific sub-sectors continued to face high inflationary pressure. Accommodation and food services recorded 22.6%, while transport and storage reached 20.4%. On the other hand, information and communication services remained relatively stable at 4.1%, with telecommunications services unchanged at 0.0%. Programming and broadcasting services recorded the highest inflation in the services category at 26.3%.
Monthly trends aligned with the overall cooling pattern. Industrial inflation rose by 0.7% in March, a slowdown from February’s 2.1%. In the construction and services sectors, monthly inflation was minimal at 0.1% and 0.2%, respectively, down from 1.0% and 0.6% in the preceding month.
The March figures point to a broader easing of inflation at the producer level, offering some relief for businesses navigating cost pressures. The slowing pace of price increases could help stabilise operations and improve cost predictability, particularly in sectors exposed to volatile input prices.
At the macroeconomic level, this trend may support the Bank of Ghana’s policy stance on interest rates, especially if consumer price inflation also begins to reflect the moderation seen in producer prices. Slower inflation could enhance the competitiveness of domestic industries while helping to contain cost pass-through to consumers.
Nonetheless, the persistence of high inflation in sub-sectors such as mining support services, broadcasting, and metals manufacturing highlights continued vulnerabilities in specific supply chains. These areas may require closer attention from policymakers to ensure the broader gains in inflation control are sustained across the economy.
