Producer inflation climbs to 5.8% in May - GSS

Ghana's producer inflation rate experienced a sharp increase, climbing to 5.8% in May 2026 from 2.7% in April, according to the Ghana Statistical Service (GSS). This significant rise, a 3.1 percentage point increase over the previous month, signals renewed cost pressures at the production level after a period of relative moderation.

The surge was primarily fueled by escalating costs in the mining and quarrying, manufacturing, and transport sectors. The mining and quarrying sector, which constitutes 43.7% of the Producer Price Index (PPI) basket, saw its inflation rate jump from 5.6% in April to 11.0% in May. Within this sector, the extraction of crude oil and natural gas recorded a substantial 18.8% inflation rate.

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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 manufacturing sector, representing 35% of the index, also shifted from deflation to inflation, rising from -0.7% in April to 0.7% in May. Notable increases were seen in the manufacture of leather and related products (19.1%) and beverages (16.3%). The transport and storage sector also showed a significant reversal, moving from a deflation rate of -6.6% in April to 7.7% in May, with land transport prices increasing by 23.8%.

Despite the year-on-year increase, the GSS report indicated a 1.4% decrease in producer prices on a month-on-month basis between April and May 2026. This suggests a potential short-term easing of production cost pressures, although the annual figures point to persistent inflationary challenges.

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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.