Mining, Water supply, and transport drive rise in producer Inflation to 5.8%

Mining and quarrying, water supply, and transportation were the main drivers of Ghana’s producer inflation in May, as the rate surged to 5.8 percent from 2.7 percent in April, according to the Ghana Statistical Service (GSS).

The latest data shows significant price increases across key sectors, with mining and quarrying recording the highest year-on-year inflation of 11 percent. This was followed by water supply, sewerage and waste management at 10.2 percent, and transportation and storage at 7.7 percent.

Electricity and gas also recorded inflation of 6.9 percent, reflecting continued cost pressures in the utilities sector.

Other sectors posted relatively moderate increases. Construction recorded inflation of 4.3 percent, while accommodation and food services registered 2.9 percent. Manufacturing, a key pillar of the economy, recorded a marginal increase of 0.7 percent.

Despite the sharp rise in annual producer inflation, the data also showed a 1.4 percent decline in factory gate prices between April and May, indicating some short-term easing in production cost pressures.

The Ghana Statistical Service noted that businesses may need to adopt strategies such as forward contracting and bulk purchasing of inputs to manage rising production costs.

It also urged policymakers to strengthen inflation monitoring systems, particularly in mining, transport, and manufacturing, to help manage potential spillover effects along supply chains.

Producer Price Inflation (PPI), which measures changes in the prices received by producers for goods and services, is considered a key leading indicator of consumer inflation trends, as increases in production costs often translate into higher retail prices.

The latest figures highlight growing cost pressures in several productive sectors, even as short-term monthly declines suggest possible relief if the trend continues.

Economists say the data will be important for businesses planning input costs and for policymakers seeking to manage inflation expectations and maintain price stability in the coming months.

Prince Antwi

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