Producer price inflation rose to 33.2% in August 2024, up from 29.1% in July, according to the latest Producer Price Index (PPI) release by the Ghana Statistical Service (GSS). This marks the sixth consecutive month of rising inflation since a reduction was recorded in February 2024. On a monthly basis, producer price inflation was up 2.7% compared to July 2024.

The Industry sector continued to lead with inflation of 44.2%, followed by Construction at 22.7%, and Services at 14.0%. Within the sub-sectors, Mining and Quarrying saw the highest inflation with a staggering 54.2%, followed by Accommodation and Food Service Activities at 30.9%, and Transportation and Storage at 29.0%. The lowest inflation was recorded in Water Supply, Sewerage, and Waste Management (3.2%), Information and Communication (10.5%), and Electricity and Gas (12.4%).

Despite the rising producer inflation, consumer inflation fell again in August, continuing its downward trend. However, producer prices often act as a leading indicator of consumer prices, suggesting that the cost pressures on producers could eventually pass through to consumers. As a result, the persistent rise in producer prices may limit the Bank of Ghana’s (BoG) ability to lower the policy rate, which currently stands at 29%.