GSS calls for tighter supply-chain monitoring as producer inflation rises to 5.8%

The Ghana Statistical Service (GSS) has called for closer monitoring of supply chains to manage inflationary pressures after producer inflation rose sharply to 5.8 percent in May 2026.

According to the latest Producer Price Index (PPI) report, the year-on-year producer inflation rate increased by 3.1 percentage points from 2.7 percent in April 2026 to 5.8 percent in May, indicating that prices received by domestic producers for goods and services were, on average, 5.8 percent higher than in May 2025.

Despite the annual increase, producer prices declined on a month-on-month basis, with inflation falling by 1.4 percent between April and May 2026, suggesting a short-term easing in price pressures.

Mining drives inflation rebound

GSS attributed the rise in annual producer inflation largely to developments in the mining and quarrying sector, which carries the largest weight in the PPI basket at 43.7 percent.

Inflation in the sector rose from 5.6 percent in April to 11.0 percent in May, contributing 4.8 percentage points to overall producer inflation.

The manufacturing sector, which accounts for 35.0 percent of the index, also returned to positive inflation, moving from a deflation rate of -0.7 percent in April to an inflation rate of 0.7 percent in May.

Similarly, transport and storage inflation rebounded strongly, rising from -6.6 percent in April to 7.7 percent in May, while accommodation and food service activities moved from -7.2 percent to 2.9 percent over the same period.

At the sectoral level, inflation for Industry less Construction stood at 5.1 percent in May, up from 2.2 percent in April.

Construction inflation increased from 0.9 percent to 4.3 percent, while Services inflation rose from -1.3 percent to 1.8 percent.

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Among the major sub-sectors, mining and quarrying recorded the highest inflation rate of 11.0 percent, followed by water supply, sewerage and waste management at 10.2 percent, transport and storage at 7.7 percent, and electricity and gas at 6.9 percent.

Sub-sector performance

Within the mining sector, the extraction of crude oil and natural gas recorded the highest inflation rate of 18.8 percent. Mining of metal ores posted inflation of 6.5 percent, while mining support service activities recorded 5.0 percent.

In manufacturing, the highest inflation rates were recorded in the manufacture of leather and related products at 19.1 percent and the manufacture of beverages at 16.3 percent. Conversely, the manufacture of other non-metallic mineral products recorded a deflation rate of 13.3 percent.

The construction sector also showed stronger price growth, with construction of buildings recording inflation of 5.4 percent, followed by specialised construction activities at 4.4 percent and civil engineering at 3.9 percent.

In the services sector, transport and storage recorded inflation of 7.7 percent, accommodation and food services posted 2.9 percent, while information and communication registered 0.5 percent.

GSS recommendations

Commenting on the findings, GSS noted that the increase in producer inflation signals emerging upward pressure on production costs and could eventually feed into consumer prices if not carefully monitored.

The Service therefore urged government to strengthen inflation monitoring and surveillance along supply chains to track potential cost pass-through risks.

It said close monitoring of key sectors, particularly mining, transport and manufacturing, remains important for managing inflationary pressures in the economy.

GSS also advised businesses to adopt strategic pricing decisions and consider securing key inputs through forward contracts or bulk purchasing arrangements where feasible to mitigate rising production costs and protect profitability.

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