The average prices of goods and services sold by producers in Ghana dropped significantly in May 2025. According to the Ghana Statistical Service (GSS), producer price inflation fell to 10.2%, down from 18.5% in April. That’s an 8.3% drop in just one month, the lowest rate since November 2023.
But what does this really mean?
In simple terms, the cost of producing goods and services is going down. And when that happens, it usually opens the door for stable prices in the market, something that benefits consumers, businesses, and the economy at large.
What’s Driving the Drop?
Two major sectors are behind this big change:
- Manufacturing
- Mining and Quarrying
Together, they made up nearly 79% of the total decline in producer price inflation. These sectors are the backbone of Ghana’s industrial economy, so their performance plays a huge role in shaping national prices.
What Businesses Should Do Now
With prices becoming more stable, the GSS is encouraging businesses to take bold steps:
- Revisit your cost structure: Lower production costs mean you might be able to reduce prices and attract more customers.
- Resume paused investments or projects: A more stable pricing environment is good for growth.
- Talk to your banks: You might now get better loan terms due to falling input prices.
Advice for Government
The GSS is calling on the government to:
- Fast-track key projects like the Gold Board and Agriculture for Transformation Agenda to help strengthen the cedi and reduce reliance on imports.
- Use detailed data to shape smart decisions around inflation, trade, and industry policies.
Tips for Consumers and Households
Here’s what you can do during this period of slow price increases:
- Save more: Since prices are rising slowly (or even dropping), it’s a good time to build your savings.
- Avoid panic buying: Don’t rush to stock up unnecessarily — prices aren’t spiking.
- Shop smart: Compare prices and buy only what you need.
Bottom Line
Producer prices are falling, a good sign for Ghana’s economy. Whether you’re a business owner, a government official, or just an everyday shopper, this shift could mean more stability, better prices, and smarter decisions ahead.
Stay informed, stay smart — and make the most of it!
