High power, water and transport costs pressure Ghanaian businesses

Ghanaian businesses are grappling with rising costs for electricity, water and transport services, even as headline producer inflation remains relatively low.

Data released by the Ghana Statistical Service (GSS) on Wednesday, August 19, 2026, showed Producer Price Inflation (PPI) at 4.0% in July 2026.

However, several key sectors recorded significantly higher increases, putting pressure on firms that rely heavily on utilities and logistics.

The electricity and gas sector posted the highest producer inflation at 13.3% year‑on‑year, driven by a 13.3% rise in power generation, transmission and distribution costs, alongside a 12.2% increase in gas distribution.

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The water supply, sewerage and waste management sector rose by 10.1%, with water collection, treatment and supply alone climbing 14.1%.

Transport and storage costs also increased by 10.1%, with land transport inflation surging 23.4%, more than double the 10.3% recorded a year earlier.

The accommodation and food services sector registered 9.9% inflation during the period.

Despite these sharp increases, their impact on headline PPI remains limited because the sectors carry relatively small weights in the overall calculation. Electricity and gas account for 4.3%, while transport carries 2.4%.

By contrast, the information and communication sector, which has the largest weight at 11.1%, recorded only 0.7% inflation in July.

The figures highlight a disconnect between headline producer inflation and the real operating costs faced by businesses.

While overall inflation appears subdued, companies continue to struggle with high utility and transport costs, raising concerns about competitiveness and profitability.

DR/SA

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