Producer inflation in Ghana slowed significantly in June 2026, driven largely by a sharp decline in mining and quarrying prices, even as businesses continued to face rising costs in utilities, transportation, accommodation and parts of the manufacturing sector.
According to the Ghana Statistical Service (GSS), the Producer Price Index (PPI) recorded a year-on-year inflation rate of 3.5% in June, down from 5.8% in Maybe decline of 2.3 percentage points. On a month-on-month basis, producer prices fell by 3.7%, signalling a broad easing in the prices producers receive for goods and services.
The Producer Price Index measures changes in the prices domestic producers receive for their output across industry (excluding construction), construction and services.
The latest figures suggest that inflationary pressures at the producer level are easing, which could help support lower inflation across the broader economy in the months ahead. However, the decline was largely driven by one key sector mining and quarrying while several other sectors continued to record rising production costs.
Industry excluding construction recorded an annual producer inflation rate of 3.3% in June, down from 6.0% in May. Prices in the sector also declined 4.2% compared with the previous month, mainly due to a sharp 9.4% drop in mining and quarrying prices.
Mining and quarrying, which accounts for the largest share of the Producer Price Index basket at 43.7%, recorded annual inflation of 2.6%, a sharp fall from 11.0% in May. As a result, the sector’s contribution to overall producer inflation dropped from 4.8 percentage points in May to just 1.1 percentage points in June, making it the biggest factor behind the slowdown in headline inflation.
Within the sector, inflation for crude oil and natural gas extraction stood at 5.0%, while inflation for metal ore mining slowed dramatically to 0.7% from 6.5% in May. Mining support services recorded 5.8% inflation.
The monthly data also highlighted the importance of the mining sector in June’s overall performance. Mining and quarrying alone accounted for -4.1 percentage points of the overall monthly decline in producer prices, more than offsetting price increases recorded in other sectors.
In contrast, manufacturing showed renewed cost pressures. Annual producer inflation in the sector rose to 3.5% in June from 0.8% in May, while prices increased 1.3% over the previous month.
Several manufacturing industries posted notable increases. The manufacture of fabricated metal products recorded the highest inflation rate at 26.3%, followed by leather and related products at 19.1%. Beverage manufacturing recorded 16.4%, while food manufacturing stood at 8.7%. The only major manufacturing group to record negative inflation was other non-metallic mineral products, at -2.3%.
Cost pressures also remained elevated in key service and utility sectors.
Electricity and gas recorded annual producer inflation of 12.5%, up from 8.5% in May, while water supply, sewerage and waste management stood at 10.3%. Transportation and storage recorded 10.0%, and accommodation and food service activities rose sharply to 10.8%, compared with 2.9% the previous month.
These increases suggest that although overall producer inflation is easing, businesses in sectors closely linked to everyday economic activity continue to face significant cost pressures that could eventually feed into consumer prices.
The construction sector also recorded a modest increase, with annual producer inflation rising to 4.6% from 4.3% in May, although prices declined slightly by 0.2% on a monthly basis.
Construction of buildings posted inflation of 6.7%, civil engineering 3.8%, and specialised construction activities 4.3%. Within civil engineering, utility projects recorded the highest inflation at 21.7%, reflecting continued cost pressures in infrastructure development.
Meanwhile, the services sector recorded annual producer inflation of 2.5% in June, with prices increasing 0.5% over the previous month.
Transport and storage remained one of the highest-inflation service categories at 10.0%, led by land transport, which recorded inflation of 21.4%. Air transport remained unchanged at 10.3%, while postal and courier services recorded the lowest inflation at 1.7%.
Accommodation services also saw a sharp increase, with inflation rising to 11.6% from 3.1% in May, while food and beverage service activities recorded 6.8% inflation.
Overall, the June producer inflation data points to improving inflation conditions for Ghana’s economy. However, the slowdown was largely driven by falling mining prices rather than broad-based declines across all sectors.
