Ghana’s producer price inflation increased to 4.4 per cent year-on-year in August 2026, with crude oil and natural gas extraction driving factory-gate price increases throughout the country’s production systems.
The latest Producer Price Index (PPI) report by the Ghana Statistical Service (GSS), stated that the 4.4 per cent increase in August 2026 marked a 0.4 percentage points from four per cent recorded in July.
The month-on-month producer inflation stood at 2.5 per cent in August, up from the two per cent in July, signalling raising production costs.
This is expected to be passed on to consumer prices as producers pass input cost increases through to retail markets.
In terms of sector development, industry (excluding construction) accelerated sharply to 6.3 per cent year-on-year from 5.6 per cent in July, driven primarily by mining operations powered by crude oil price dynamics.
Mining and quarrying emerged as the dominant driver of August 2026 producer inflation, accounting for 43.7 per cent of the overall PPI increase, with crude oil and natural gas extraction posting 12.9 per cent year-on-year inflation.
Mining support service activities increased 5.7 per cent while other mining and quarrying activities rose 5.6 per cent, though mining of metal ores contracted 0.4 per cent, representing the only decline within the mining subsectors.
Electricity and gas services recorded 12.3 per cent year-on-year inflation in August, easing marginally from 13.3 per cent in July, yet remained the fastest-rising productive activity within Ghana’s economy.
Construction sector inflation slowed to 4.5 per cent from 4.8 per cent, while the services sector saw the smallest price pressure, declining to 1.8 per cent from 2.5 per cent, indicating that different economic segments faced divergent cost pressures.
Manufacturing sector inflation averaged 3.6 per cent year-on-year, with leather product manufacturing posting the highest subsector inflation at 17.4 per cent, followed by fabricated metal products at 16.4 per cent and furniture manufacturing at 8.5 per cen.
Food products manufacturing increased 8.4 per cent, while beverage manufacturing rose 7.1 per cent, while motor vehicle manufacturing and non-metallic mineral products recorded negative inflation at negative 2.4 per cent and 0.3 per cent respectively.
The services sector, representing the economy’s largest component by employment and revenue generation, experienced the most moderate price dynamics with 1.8 per cent year-on-year inflation in August, easing from July’s 2.5 per cent.
However, significant variation existed within services subsectors, with motion picture, video, television production, and music publishing recording 87.9 per cent inflation, an extreme outlier suggesting significant cost increases in media production activities.
Land transportation inflation measured 9.3 per cent, air transport 7.8 per cent, and accommodation 7.5 per cent, indicating that transportation and hospitality services faced moderate cost pressures.
Information and communication activities recorded 0.6 per cent inflation, telecommunications remained stable at zero per cent, while water transportation increased only 0.2 per cent, suggesting that digital services and maritime transportation experienced stable costs.
Dr Alhassan Iddrisu, the Government Statistician, in a virtual release of the August PPI, explained that producer prices provided an early-warning system for the broader economy, signalling cost pressures at the factory-gate before they reached retail shops and impacted household budgets.
He encouraged households to prioritise essentials, adjusting spending to price changes, reducing avoidable costs through energy and water-saving practices and efficient resource use, while shopping prudently.
The Government Statistician noted that the August 2026 producer inflation signalled emerging risks requiring strategic responses by businesses and investors, including improving operational efficiency, careful cost management, and deliberate review of pricing strategies to maintain profitability while retaining customer relationships.
He also urged companies to secure critical input supplies through diversified suppliers and maintain appropriate inventory levels to reduce exposure to future price increases and supply disruptions while investing in productivity-enhancing technologies.
Dr Iddrisu asked the Government and policymakers to use the PPI data as an evidence base for targeted policy interventions addressing cost pressures in critical sectors while supporting economic growth.
He also called for monitoring of sectoral inflation differences, prioritising support towards sectors experiencing significant increases while identifying opportunities in lower-inflation sectors to provide competitive advantages and create employment.
