Producer price inflation will building up to a couple of.2% in September 2025 – Life Pulse Daily
Producer Price Inflation in Ghana Rises to 3.2% in September 2025
As reported by the Ghana Statistical Service (GSS), producer price inflation (PPI) surged to 3.2% in September 2025, marking a 0.2 percentage point increase compared to August 2025. Despite this growth, the YoY change reflects a sharp decline of 27.3 percentage points from September 2024, indicating a stabilizing economic environment. This analysis explores the drivers, sectoral impacts, and strategic responses to rising producer prices.
Analyzing the September 2025 PPI Dynamics
The GSS highlighted a 0.9% month-on-month rise in PPI between August and September 2025. This uptick, though modest, signals ongoing inflationary pressures as businesses adjust to economic transitions.
Sectoral Breakdown: Winners and Losers
- Mining and Quarrying (43.7% weight): Inflation rose marginally from 4.9% to 5.0%, suggesting sustained demand for mineral resources.
- Manufacturing (35% weight): A 0.1 percentage point increase to 1.7% hints at gradual recovery in industrial output.
- Transport and Storage (-8.2% decline): Sharply falling costs may reflect lower fuel prices or reduced logistical demand.
Summary of Key Trends
Producer prices in Ghana rose marginally month-on-month to 3.2% in September 2025, with significant declines in transport and storage sectors.
Key Points to Understand
- YoY PPI fell sharply to 3.2% from 30.5% (27.3-point drop).
- Mining/Manufacturing sectors led inflationary pressure.
- Transport and storage sectors saw an 8.2% decline.
- GSS urges businesses to reinvest savings into productivity.
Practical Advice for Businesses
To navigate rising costs, the GSS recommends:
Adopt Efficiency Measures
Reinvest in Growth
Consumer Strategies in an Inflationary Climate
Households are advised to:
Prioritize Value Over Price
Points of Caution: Economic Considerations
While the PPI decline is positive, stakeholders should:
Avoid Over-Optimism
Comparative Sector Insights
Contrasting sectoral performances reveals:
- Stable gains in resource extraction vs. volatile energy sectors.
- Transport cost reductions contrast with regional supply chain bottlenecks in other markets.
Legal and Policy Implications
The GSS’s call for tax relief and infrastructure investment underscores the need for legislative action:
Policy Recommendations
Conclusion: Balancing Growth and Stability
September 2025’s PPI trends reflect a mixed economic landscape. While resource sectors drive inflation, structural reforms could mitigate long-term risks. Proactive measures by businesses and policymakers remain critical to sustaining growth.
Frequently Asked Questions (FAQ)
1. What is the current producer price inflation rate in Ghana?
As of September 2025, Ghana’s PPI stands at 3.2%, a 0.2-point increase from August.
2. How does this compare to last year’s inflation?
YoY, inflation dropped 27.3 percentage points to 3.2% from September 2024’s 30.5%.
3. Which sectors contributed most to September’ inflation?
Mining/Quarrying (5.0%) and Manufacturing (1.7%) led price rises, per GSS data.
Sources and Credits
Data sourced from the Ghana Statistical Service (GSS). Metrics reflect official GSS reporting standards for September 2025.
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