Mining, transport sectors drive producer inflation to 5.8% in May

The Ghana Statistical Service (GSS) has revealed that mining and quarrying, transportation and storage, as well as water supply services were the main drivers of producer inflation in May 2026.

This comes as Ghana’s Producer Price Inflation (PPI) rate more than doubled, rising to 5.8 percent from 2.7 percent recorded in April.

Producer Price Inflation is considered a key indicator of future consumer inflation, since increases in production costs are often passed on to consumers through higher prices of goods and services.

According to GSS reports, the electricity and gas sector recorded a notable increase of 6.9 percent, while construction posted inflation of 4.3 percent.

Accommodation and food service activities registered 2.9 percent, whereas manufacturing, one of Ghana’s largest productive sectors saw a relatively modest rise of 0.7 percent.

The mining and quarrying sector recorded the highest year-on-year inflation rate at 11 percent during the period under review. Water supply, sewerage, and waste management followed with 10.2 percent, while transportation and storage registered 7.7 percent.

The May inflation data suggests that although annual production costs continue to rise, the recent decline in monthly producer prices could provide some relief if the trend is sustained in the coming months.

NSA Trial: Witness tells court why ADB rushed initial payment in hire purchase deal

However, the Ghana Statistical Service has urged businesses to adopt measures such as forward contracts and bulk purchasing arrangements to protect themselves against future increases in production costs.

Despite the sharp rise in annual producer inflation, the data showed that producer prices declined by 1.4 percent on a month-on-month basis between April and May, suggesting a temporary easing of cost pressures at the factory gate.

The Service also called on government to intensify inflation monitoring efforts, particularly within the mining, transport, and manufacturing sectors, to help contain possible price pressures across supply chains.

ANAS/SA

GRA pushes digital tax reform with ITAS stakeholder engagement