Ghana’s producer price inflation climbed to 4.4 percent in August 2026, up from 4.0 percent in July, with the mining and quarrying sector emerging as the principal driver of rising factory-gate prices, according to the latest data released by the Ghana Statistical Service (GSS).
The Producer Price Index (PPI), which measures changes in prices received by producers for goods and services, also recorded a month-on-month inflation rate of 2.5 percent in August, compared with 2.0 percent in July, indicating a strengthening of price momentum across the production sector.
Government Statistician Dr. Alhassan Iddrisu, presenting the August PPI results, said the latest figures pointed to moderate but persistent producer price pressures, with developments in the extractive industry continuing to shape overall inflation trends.
The mining and quarrying sector, which accounts for 43.7 percent of the PPI basket, recorded year-on-year producer inflation of 4.9 percent in August, up from 3.5 percent in July.
The sector contributed 2.1 percentage points to the national producer inflation rate, making it the single largest contributor.
Within the sector, the extraction of crude oil and natural gas recorded a sharp inflation rate of 12.9 percent, the highest among mining activities.
Mining support services and other mining and quarrying activities posted inflation rates of 5.7 percent and 5.6 percent, respectively, while metal ore mining remained in deflation territory at -0.4 percent.
According to GSS, rising crude oil and gas prices were the key factor behind the mining sector’s stronger performance and the overall increase in producer inflation.
At the broad sector level, industry excluding construction recorded the highest year-on-year producer inflation rate of 6.3 percent, up from 5.6 percent in July.
By contrast, inflation in the construction sector eased slightly to 4.5 percent from 4.8 percent, while the services sector slowed to 1.8 percent from 2.5 percent during the same period.
On a monthly basis, industry prices rose 3.1 percent, while construction and services recorded declines of 0.2 percent and 0.3 percent, respectively.
Despite a modest slowdown, the electricity and gas sector continued to record one of the highest inflation rates in the economy at 12.3 percent, down from 13.3 percent in July. Water supply and waste management services maintained a year-on-year inflation rate of 10.1 percent.
Transport and storage inflation moderated to 6.5 percent, while accommodation and food services recorded 7.5 percent.
The GSS noted that although utilities remained among the fastest-rising activities, their contribution to overall producer inflation was significantly smaller than that of mining because of their lower weight in the index.
Manufacturing, which represents 35 percent of the PPI basket, posted producer inflation of 3.6 percent in August, marginally lower than the 3.7 percent recorded in July.
Among manufacturing industries, the highest inflation rates were recorded in the manufacture of leather and related products (17.4 percent), fabricated metal products (16.4 percent), furniture (9.2%), and machinery and equipment (8.5 percent).
The data showed that 12 manufacturing industries recorded inflation rates above the sector average, reflecting varied cost pressures across production activities.
Producer inflation within the services sector remained relatively subdued at 1.8 percent.
However, significant price increases were recorded in selected subsectors, including motion picture, video and television production, sound recording and music publishing (87.9 percent), land transport (23.4 percent), and air transport (9.3 percent).
Telecommunications recorded no inflation during the period, while programming and broadcasting activities, computer-related services, and information services posted modest increases.
The Ghana Statistical Service said the rise in producer prices serves as an early signal of potential future movements in consumer prices, as higher production costs can eventually be passed through to households.
The Service advised businesses to strengthen cost controls, improve productivity and diversify supply sources to manage emerging input-cost pressures. Policymakers were also encouraged to monitor producer price developments closely and deploy targeted interventions where necessary.
Source: businesspostonline
