Energy, mining drive producer inflation to 4.4%

Ghana’s producer price inflation rose to 4.4 per cent year-on-year in August 2026, up from 4 per cent in July, as price pressures increased across several areas of production.

The latest Producer Price Index (PPI) report from the Ghana Statistical Service (GSS) showed that the August figure represented a 0.4 percentage point increase over the previous month.

On a month-on-month basis, producer inflation also increased to 2.5 per cent in August from 2 per cent in July, indicating rising costs faced by producers.

The industrial sector, excluding construction, recorded a notable increase in inflation, rising from 5.6 per cent in July to 6.3 per cent in August.

Mining and quarrying was the largest contributor to the overall producer price increase, accounting for 43.7 per cent of the August PPI. Crude oil and natural gas extraction recorded inflation of 12.9 per cent year-on-year.

Mining support service activities recorded 5.7 per cent inflation, while other mining and quarrying activities registered 5.6 per cent. Mining of metal ores, however, recorded negative inflation of 0.4 per cent, making it the only mining subsector to register a decline.

Electricity and gas services recorded 12.3 per cent year-on-year inflation in August, although this represented a moderation from the 13.3 per cent recorded in July.

The construction sector also recorded a marginal decline in inflation, from 4.8 per cent in July to 4.5 per cent in August. Services recorded the lowest rate among the major sectors, easing from 2.5 per cent to 1.8 per cent.

Within manufacturing, producer price inflation averaged 3.6 per cent year-on-year. Leather product manufacturing recorded the highest inflation at 17.4 per cent, followed by fabricated metal products at 16.4 per cent and furniture manufacturing at 8.5 per cent.

Food product manufacturing recorded 8.4 per cent inflation, while beverage manufacturing registered 7.1 per cent. Motor vehicle manufacturing and non-metallic mineral products recorded negative inflation of 2.4 per cent and 0.3 per cent respectively.

The services sector recorded 1.8 per cent year-on-year inflation in August, down from 2.5 per cent in July, although inflation varied considerably among individual subsectors.

Motion picture, video and television production, as well as music publishing, recorded 87.9 per cent inflation, representing the highest rate among the services subsectors.

Land transportation recorded 9.3 per cent inflation, while air transport and accommodation recorded 7.8 per cent and 7.5 per cent respectively.

Information and communication activities recorded 0.6 per cent inflation, while telecommunications recorded zero per cent inflation. Water transportation also recorded a relatively low rate of 0.2 per cent.

Government Statistician, Dr Alhassan Iddrisu, said the PPI served as an early indicator of cost pressures in the economy by capturing changes in producer prices before they were reflected in retail prices.

Speaking during a virtual release of the August PPI, he urged households to prioritise essential spending, reduce avoidable expenses through efficient use of resources and make prudent purchasing decisions.

Dr Iddrisu also advised businesses and investors to respond to emerging cost pressures by improving operational efficiency, strengthening cost management and reviewing pricing strategies to protect profitability while maintaining customer relationships.

He encouraged companies to diversify their suppliers and maintain adequate inventory levels to minimise exposure to future price increases and supply disruptions, while investing in technologies that could improve productivity.

The Government Statistician further urged policymakers to use PPI data to inform targeted interventions aimed at addressing cost pressures in critical sectors while supporting economic growth.

He also called for closer monitoring of differences in sectoral inflation, with support directed towards areas experiencing significant price increases and opportunities identified in lower-inflation sectors to enhance competitiveness and employment.