Ghana’s producer price inflation rose to 4.0% year-on-year in July 2026, up from 3.5% in June, driven largely by higher gold prices and continued increases in utility costs, according to the Ghana Statistical Service (GSS).
The latest Producer Price Index (PPI) data show that producer prices increased by 2.0% month-on-month in July, reversing a 3.7% decline recorded in June.
The PPI rose to 272.6 in July 2026, compared with 267.4 in June and 262.2 in July 2025.
The increase points to renewed pressure on the cost of producing goods and services, with developments in the mining and quarrying sector and rising utility costs contributing significantly to the July figures.
Government Statistician Dr Alhassan Iddrisu attributed part of the increase to higher global gold prices, which pushed up producer prices in the mining and quarrying sector.
The sector recorded a 12.4 percentage-point increase in its month-on-month inflation rate, resulting in its annual inflation rate rising from 2.6% to 3.5%.
Mining and quarrying carries the largest weight in Ghana’s Producer Price Index, accounting for 43.7% of the index.
Within the sector, crude oil and natural gas extraction recorded annual inflation of 12.2%.
Metal ore mining, however, recorded a 2.3% contraction.
Utility costs also contributed to the increase in producer prices.
Electricity and gas recorded the highest annual inflation rate among the major sub-sectors at 13.3%.
Water supply, sewerage, waste management and remediation services followed with an annual inflation rate of 10.1%.
The continued rise in utility costs could add to operating expenses for businesses and potentially increase the cost of goods and services if producers pass the additional expenses on to consumers.
Manufacturing Inflation Rises
The manufacturing sector also recorded an increase in producer price inflation, rising to 3.7% year-on-year in July.
Some manufacturing subsectors recorded significant increases.
Fabricated metal products recorded inflation of 25.9%, while leather and related products increased by 17.4%.
However, producer prices for non-metallic mineral products declined by 2.3%, providing some relief within the manufacturing sector.
The service sector recorded a comparatively moderate annual inflation rate of 2.5% in July.
Despite the overall moderate rate, several service subsectors experienced sharp price increases.
Motion picture production recorded the highest inflation rate at 87.9%, while land transport recorded inflation of 23.4%.
Telecommunications prices remained stable, recording 0.0% annual inflation.
Although Ghana’s producer price inflation remains significantly below the elevated levels recorded in previous years, the sharp month-on-month increase in July could signal renewed upstream cost pressures.
If the trend persists, businesses could face higher production costs, which may eventually translate into higher prices for consumers.
The latest data therefore highlight the potential risks posed by rising utility, transport and other input costs to household purchasing power and business operating expenses.
The Ghana Statistical Service has advised households to plan for continued pressure from utility and transport costs, while businesses could consider longer-term input contracts as a way of managing the risk of further increases in production costs.
The July PPI figures will be closely watched for signs of whether the renewed increase represents a temporary adjustment or the beginning of a sustained rise in producer prices.
