By Juliet ETEFE ([email protected])
The Ghana Statistical Service (GSS) is urging government to take advantage of the declining rate of producer inflation and accelerate targeted policy interventions to further improve exchange rate stability and grow import substitution industries.
Government Statistician Dr. Alhassan Iddrisu underscored the significance of interventions such as the Gold Board initiative and Agriculture for Transformation Agenda, stressing their importance in enhancing economic stability and reinforcing the downward trend in inflation.
This call comes on the back of a 5.9 percentage point drop in year-on-year producer price inflation from 24.4percent in March 2025 to 18.5 percent in April 2025 – marking the third consecutive month of decline.
According to the Dr. Alhassan Iddrisu, this slowdown provides a unique policy window for government to act decisively in strengthening the industrial base and stimulating economic growth.
“Now is the time to fast-track targetted interventions that will reinforce the downward trend in inflation and build a more resilient economy,” the Government Statistician advised following release of the latest Producer Price Index (PPI) data.
Beyond these flagship policies, GSS has also encouraged government to make better use of sector-specific inflation data in shaping effective industrial, trade and inflation control policies.
The PPI data for April 2025 provides a breakdown of price movements across key economic sectors including mining, manufacturing, construction and services. For instance, easing inflationary pressures in mining and manufacturing accounted for 94.5% of the inflation decline in April – signalling areas where government policy can be further calibrated to maintain stability.
“Detailed sub-sector data should be used to guide policy decisions. Understanding where inflation is cooling or persisting allows for more targetted and impactful responses,” he emphasised.
In addition, he called for intensified public education around producer price inflation and its economic implications, saying transparency and proactive communication with businesses, consumers and policymakers are crucial to building confidence in the economy’s direction.
Government also cautioned that “while a falling rate of price increases helps, it can also mean people are not buying as much”, hence government must be alert and ready to intervene if businesses or employment levels come under pressure.
Businesses
Businesses were also urged to take advantage of easing inflation by re-evaluating their cost structures and pricing models. With the rate of increase in prices of domestically produced inputs slowing, companies now have a chance to offer more competitive prices and attract new customers.
The GSS further encouraged the private sector to resume paused investment plans and cautiously explore expansion noting that stable factory gate prices reduce input cost unpredictability and make it easier to plan medium- to long-term projects.
In addition, the Service advised businesses to shift toward local sourcing, pointing out that locally sourced inputs have become relatively cheaper and offer a buffer against exchange rate fluctuations and import-related shocks. This strategy, GSS explained, not only improves cost efficiency but also supports domestic industries.
GSS further urged business owners to initiate discussions with financial institutions for improved loan terms, citing the declining inflation trend as a favourable context for negotiating better interest rates.
Households
At the household level, GSS recommended a more cautious and informed financial approach – encouraging consumers to save more and avoid panic-buying, given the increasing price stability.
Consumers were also encouraged to “speak up about unfair prices if shops keep raising prices even when the rate of increase in producer prices is going down”, as GSS believes transparency and accountability across the value chain is critical.
“Avoid High-Interest Loans since prices are stabilising; invest in small side jobs or farming. This is a good time to start small income activities like farming, petty trading or home-based services,” it added.
Fiscal
These calls come at a time when inflation rate continues on a downward trajectory, with the Consumer Price Index (CPI) report for April 2025 revealing year-on-year (y-on-y) inflation of 21.2 percent, a decline of 1.2 percentage points from the 22.4 percent recorded in March 2025 – making it the fifth consecutive month of easing.
And also the cedi staged a remissive bout against the dollar and other major trading currencies – appreciating about 16 percent against the dollar, according to Bloomberg.
The cedi was named ‘best performing currency in the world’ for the month of May by Bloomberg.
On the interbank market at close of business on Wednesday, May 20, 2025, the cedi was trading at GH¢11.85 to US$1, GH¢15.85 to £1 and GH¢13.32 to €1.
