Producer inflation climbs to 5.8% in may as Mining Sector Drives price growth

Producer inflation increased significantly to 5.8 percent in May 2026 from 2.7 percent in April, according to the latest Producer Price Index report released by the Ghana Statistical Service (GSS).

The rise indicates that producers received, on average, 5.8 percent more for their goods and services in May compared to the same month last year, reflecting renewed inflationary pressures at the production level.

Despite the sharp increase in annual inflation, producer prices recorded a month-on-month decline of 1.4 percent between April and May 2026, suggesting some easing in short-term cost pressures across sections of the economy.

The mining and quarrying sector remained the main contributor to overall producer inflation, recording an inflation rate of 11.0 percent in May. The sector’s performance continues to play a major role in shaping production costs and broader price trends within the economy.

Growth in producer inflation was also supported by improved performance in other sectors. The manufacturing sector returned to positive territory after recording an inflation rate of 0.7 percent in May, compared to negative 0.7 percent in April.

Similarly, the transport and storage sector experienced a strong rebound, with inflation rising to 7.7 percent from negative 6.6 percent during the same period, reversing previous declines in producer prices.

Producer Price Inflation (PPI) measures changes in the prices received by producers for goods and services and is often viewed as an early indicator of future consumer inflation. Rising production costs can eventually be passed on to consumers through higher retail prices.

The latest data provides valuable insights for businesses, consumers and policymakers. Businesses can use the figures to assess potential changes in input costs, while policymakers may monitor developments to identify emerging inflationary risks and supply chain pressures.

Although annual producer inflation has accelerated, the monthly decline in producer prices offers some indication of easing cost pressures. If sustained, this trend could help moderate inflationary risks and support price stability in the months ahead.

Prince Antwi

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