PPI increases to 4.0% in July 2026, indicates moderate strengthening of price pressures
According to the GSS, inflation showed mixed movements across the three broad sectors over the year.
In July 2026, Ghana's Producer Price Inflation (PPI) climbed to 4.0%, signifying a moderate uptick in price pressures experienced by producers, according to the Ghana Statistical Service (GSS). This marked a 0.5 percentage point rise from the previous month's 3.5%. However, the month-over-month inflation rate remained at 2.0%. The GSS noted that inflation exhibited varied trends across three main sectors throughout the year.
Industry (excluding construction) surged from 3.3% to 5.6%, while services and construction both saw slight declines, from 2.6% to 2.5% and 4.9% to 4.8%, respectively. The Mining and Quarrying industry was the primary catalyst for the year-on-year growth, rising from 2.6% to 3.5%, contributing to the minor increase in year-on-year inflation.
Three segments exceeded the sub-sector average of 3.5%, namely Extraction of Crude and natural gas, Other mining and quarrying, and Mining support service activities. For construction, two sub-sectors had inflation rates below the average of 4.8%, with construction of buildings recording the highest at 7.9%, followed by specialised works (4.3%) and civil engineering (3.5%).
Within manufacturing, two groups experienced deflation. Fifteen industries were marked by producer inflation rates surpassing the sub-sector average of 3.7%. In services, there was no change in producer prices for the telecommunication sub-sector. Seven sub-sectors had producer prices higher than the sector average of 2.5%. For households and consumers, the increasing producer prices could potentially lead to higher retail prices in the future.
It is advised to budget carefully for essential services like electricity, water, and transport, where producer pressures are still notable. Businesses and investors should brace for higher production costs, necessitating careful management of pricing and inventory management to hedge against potential price spikes. The government and policymakers are urged to adopt prudent policies aimed at curbing cost pressures and fostering steady economic growth, while also supporting sustained growth to lower production costs and bolster competitiveness.
Written by urgent.news from Joy Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
