Ghana’s Producer Price Inflation (PPI) for January 2026 has declined to 1.6 percent year-on-year, down from 1.9 percent recorded in December 2025, according to the Government Statistician, Alhassan Iddrisu.
Releasing the latest data at a press briefing, he explained that the 0.3 percentage point decline indicates a marginal easing in the rate at which prices of goods and services are changing at the producer level compared to the same period last year.
However, on a month-on-month basis, producer prices increased by 3.3 percent between December 2025 and January 2026, reflecting a rise in the average prices received by domestic producers within the month under review.
The Producer Price Index measures the average change over time in the prices received by domestic producers for their output. It serves as an early indicator of inflationary trends in the economy, as changes at the producer level often pass through to consumers.
Sectoral Performance
Mining and Quarrying, which remains the largest sector with a weight of 43.7 percent in the PPI basket, recorded an increase in producer inflation from 3.3 percent in December 2025 to 3.7 percent in January 2026, representing a 0.4 percentage point rise.
The Manufacturing sector, accounting for 35 percent of the PPI weights, recorded a significant decline. Inflation in the sector dropped from 0.1 percent in December 2025 to negative 2.2 percent in January 2026, a fall of 2.3 percentage points. This suggests that prices received by manufacturers decreased during the period, offering some cost relief within the production chain.
Producer inflation in the transport and storage sub-sector continued its downward trend. It declined further from negative 3.7 percent in December 2025 to negative 6.9 percent in January 2026, indicating sustained reductions in prices within the logistics and transportation space.
According to the Government Statistician, while the year-on-year figure shows moderation, the month-on-month increase of 3.3 percent signals emerging short-term price pressures that require careful monitoring.
Implications and Recommendations
For households and consumers, the Ghana Statistical Service advised shifting consumption toward goods and services with relatively stable prices to help protect real incomes. Consumers are also encouraged to make informed spending decisions by focusing on value and monitoring price trends.
Businesses, particularly those that rely on manufactured inputs, may take advantage of the negative manufacturing inflation to negotiate medium-term supply contracts to lock in favourable pricing. At the same time, firms are advised to adjust pricing cautiously in light of the 3.3 percent month-on-month increase, so as not to trigger demand contraction.
For government, the Statistical Service noted that although year-on-year inflation remains moderate, the strong month-on-month growth warrants close observation to prevent any re-acceleration of price pressures. The continued decline in transport inflation was described as positive for cost competitiveness, with a recommendation that policies sustain fuel supply stability and improve logistics efficiency.
The January 2026 PPI figures provide an important signal on the direction of production costs and their potential impact on consumer inflation in the coming months.
By Bawa Musah
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