Ghana’s producer inflation rate rose sharply to 5.8 per cent in May 2026 from 2.7 per cent recorded in April, driven mainly by rising costs in the mining and quarrying, manufacturing, and transport sectors, the Ghana Statistical Service (GSS) has announced.
The latest Producer Price Index (PPI) report showed that the year-on-year increase represents a 3.1 percentage point rise over the April rate, signalling renewed cost pressures at the production level after several months of relative moderation.
The PPI, which measures changes in prices received by producers for goods and services, stood at 277.4 in May 2026, compared with 281.5 in April 2026 and 262.4 in May 2025.
Data on the May Producer Price Inflation (PPI) presented to The Ghanaian Times by GSS Accra yesterday, said the 5.8 per cent inflation rate means that, on average, the ex-factory prices of goods and services increased by 5.8 per cent between May 2025 and May 2026.
Despite the rise in annual inflation, PPI declined on a month-on-month basis, with the report indicating a 1.4 per cent decrease between April and May 2026, suggesting a short-term easing in production cost pressures.
The increase in producer inflation, GSS said was largely attributed to developments in the mining and quarrying sector, which accounts for 43.7 per cent of the PPI basket. Inflation in the sector jumped from 5.6 per cent in April to 11.0 per cent in May.
Within the sector, the extraction of crude oil and natural gas recorded an inflation rate of 18.8 per cent, while mining of metal ores increased from 5.2 per cent in April to 6.5 per cent in May.
The manufacturing sector, which carries a weight of 35 per cent in the index, also returned to positive territory, rising from a deflation rate of -0.7 per cent in April to an inflation rate of 0.7 per cent in May.
Among manufacturing groups, the manufacture of leather and related products recorded the highest inflation rate of 19.1 per cent, followed by beverages at 16.3 per cent.
The manufacture of other non-metallic mineral products recorded the lowest rate at negative 13.3 per cent.
The transport and storage sector recorded one of the most significant reversals, moving from a deflation rate of -6.6 per cent in April to an inflation rate of 7.7 per cent in May.
Land transport posted the highest inflation within the sector at 23.8 per cent, while air transport recorded 10.3 per cent.
The report further showed that producer inflation for industry excluding construction stood at 5.1 per cent, while construction recorded 4.3 per cent and services 1.8 per cent.
Within the construction sector, utility projects registered the highest inflation rate of 15.6 per cent, while specialised construction activities recorded 9.1 per cent.
The services sector remained relatively stable during the period, although food and beverage service activities rose from a deflation rate of 1.4 per cent in April to an inflation rate of 1.9 per cent in May.
Accommodation services also rebounded strongly, recording 3.1 per cent inflation compared with negative 8.2 per cent in the previous month.
The GSS urged businesses to adopt strategic pricing measures and secure key inputs where possible to manage emerging cost pressures.
It also encouraged government to strengthen inflation monitoring across supply chains, particularly in the mining, manufacturing and transport sectors, to minimise the risk of higher production costs being passed on to consumers.
BY KINGSLEY ASARE
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