Ghana’s producer inflation recorded a marginal increase in April 2026, with the Producer Price Index (PPI) rising to 2.7 percent year-on-year, data released by the Ghana Statistical Service (GSS) has shown.
The latest figures indicate a 0.4 percent month-on-month increase, signalling mild price pressures at the producer level despite continued weakness in key service sectors.
The PPI measures the average change over time in prices received by domestic producers for goods and services, covering industry (excluding construction), construction and services.
According to the GSS, price movements across sectors were uneven, with utilities and extractive industries driving inflation while services continued to contract.
Electricity and gas recorded the highest year-on-year inflation at 11.0 percent, followed closely by water supply and waste management at 10.3 percent. Mining and quarrying also posted gains, rising 5.6 percent, supported by higher crude oil and gas prices (7.2 percent).
However, growth in metal ore prices slowed to 5.2 percent, down from 7.7 percent in previous months. In contrast, manufacturing prices declined by 0.6 percent, while transport and storage and accommodation and food services contracted sharply by 7.1 percent and 7.0 percent respectively.
Information and communication prices remained broadly stable, inching up by just 0.1 percent. The industry sector, excluding construction, recorded 2.2 percent year-on-year inflation but saw a 0.6 percent month-on-month decline.
GSS noted that the sector dipped in mid-2025 but has since recovered steadily into 2026. Mining continued to lead growth, while manufacturing showed early declines before a gradual rebound.
Within manufacturing, performance was mixed. Although the sector posted an overall decline, 18 out of 23 sub-groups recorded inflation rates above the sector average. Beverage production led with a 15.5 percent increase, followed by leather products at 9.3 percent. However, non-metallic mineral products recorded the steepest decline at -14.0 percent.
The utilities sector maintained strong upward pressure on producer prices. Electric power generation and distribution rose by 12.4 percent, although gas manufacturing and distribution declined sharply by 26.4 percent, partially offsetting overall gains.
In water and waste management, water collection and supply increased by 14.9 percent, while waste management services recorded a 5.9 percent rise, the largest recent increase within the segment.
Producer inflation in the construction sector stood at 0.9 percent year-on-year, with a modest month-on-month increase of 0.3 percent. The sector’s index declined earlier in 2025 but has since stabilised, reaching 226.0 in April 2026.
Sub-sector data showed mixed trends: construction of buildings fell by 5.9 percent, while civil engineering and specialised construction activities grew by 3.9 percent and 4.5 percent respectively. Within civil engineering, utility projects recorded the highest inflation at 15.6 percent, significantly outpacing road and railway construction at 3.9 percent.
Specialised construction activities were led by other specialised works at 9.1 percent, while installation services grew by 4.4 percent despite a slight slowdown. The services sector continued to weigh on overall producer inflation, contracting by 1.4 percent year-on-year, although it recorded a 0.5 percent monthly increase.
Transport and storage remained in negative territory at -7.1 percent, despite strong growth in air transport prices, which surged by 12.1 percent. Land transport and postal services recorded modest increases of 2.1 percent and 1.6 percent respectively.
Accommodation and food services declined by 7.0 percent, although GSS noted signs of improvement. Food and beverage services rose by 0.5 percent, while accommodation prices, though still negative at -8.2 percent, are gradually recovering.
In the information and communication sector, motion picture and media production recorded a significant 87.9 percent increase—the highest of all sub-sectors—while telecommunications remained stable and information services grew by 1.7 percent.
The April data suggests emerging but contained inflationary pressures at the producer level, largely driven by utilities and extractive industries. However, persistent declines in services and weak manufacturing performance highlight underlying demand constraints in parts of the economy.
Analysts say the modest uptick in monthly inflation may signal the beginning of gradual price recovery, though broader gains will depend on sustained improvements across services and industrial output.
By: Christian Akorlie / businesspostonline
