Ghana’s Industrial Producer Price Inflation Hits 43.7% in January 2025

The mining and quarrying sub-sector emerged as the highest contributor to industrial inflation, recording an inflation rate of 47.5%—up significantly from 42.8% in December 2024. Within this sector, mining of metal ores saw inflation rise to 61.2%, while mining support services reported a staggering 77.6%, making it the highest in the sub-sector.

The manufacturing sub-sector, which dominates Ghana’s industrial base, posted an inflation rate of 19.9%. Among the manufacturing categories, the production of basic metals recorded the highest inflation at 49.5%, followed by motor vehicles, trailers, and semi-trailers at 35.8%.

Electricity and gas inflation increased to 9.5%, signaling rising costs in energy production and distribution. The water supply, sewerage, and waste management sub-sector remained the least affected, with inflation at a modest 4.8%. Notably, this sub-sector showed no month-on-month change compared to December 2024.

Month-on-Month Changes

The month-on-month inflation change from December 2024 to January 2025 was 4.5%, with the mining and quarrying sub-sector again experiencing the highest increase at 6.6%. In contrast, other sectors recorded relatively smaller increases, while the water supply and waste management sub-sector remained unchanged.

The GSS emphasized that these figures are provisional and could be revised as more data becomes available. Nonetheless, the report offers valuable insights into the trends shaping Ghana’s industrial landscape and the cost dynamics facing producers.

The increase in industrial producer prices is likely to have a ripple effect on consumer prices, as businesses pass on rising production costs to end-users. Particularly in sectors like mining, manufacturing, and energy, the growing cost burden could impact Ghana’s broader economic recovery efforts and price stability.