Ghana's Producer Inflation Hits 19-Month Low as Bond Market Booms
- asanteyawobed
- Jul 17
- 3 min read
Ghana’s financial landscape is shifting again, with producer inflation tumbling, bond trading hitting record highs, and the cocoa sector back in political focus.
Producer Inflation Drops to 5.9% — Lowest Since 2023
According to new data from the Ghana Statistical Service, the Producer Price Inflation (PPI) rate fell to 5.9 percent in June 2025, the lowest level since November 2023. This marks the fifth consecutive month of decline, signaling slowing cost pressures for businesses.
On a monthly basis, producer prices experienced a 1.4 percent deflation, meaning producers on average earned less for goods and services in June than in May. The mining and quarrying sector, which has a 43.7 percent weight in the PPI basket, saw inflation plunge by 7.2 percentage points to 6.5 percent. Manufacturing, which contributes 35 percent to the index, dropped by 2.2 points to 7.6 percent.
Other sectors such as transport and hospitality also saw sharp price corrections. Transport costs dipped further to -7.0 percent, while hotel and restaurant prices reversed dramatically from +6.5 percent to -2.7 percent.
Dr. Alhassan Iddrisu, the Government Statistician, advised firms to adapt smartly: “Falling costs bring opportunity, but tighter margins too. Stay ahead by innovating, not just adjusting prices.”
Cocoa Farmers Promised 70% of World Market Price
On the political front, former President John Mahama has committed to pegging cocoa-farm incomes at 70 percent of the international market price if elected. Speaking in the Western North Region, he cited the hardships faced by farmers including low prices, delayed inputs, and lack of support.
His proposed reforms include:
Pegging producer price to global benchmarks
Reviving the cocoa rehabilitation program in districts like Bia and Juaboso
Accelerating input delivery and seedling distribution
Providing hands-on extension services through a restructured COCOBOD
Guaranteeing compensation and free replanting for farms affected by disease control
Mahama added that this plan would not only enhance rural household incomes but also boost foreign exchange inflows and support cedi stability.
Bond Market Records Highest Weekly Trade Since 2023
In capital markets, trade activity on Ghana’s secondary bond market soared by 75.58 percent week-on-week, hitting GH¢2.12 billion, the highest weekly volume recorded since 2023.
Most of the activity was concentrated in short-term bonds, which accounted for 49 percent of turnover with an average Yield-To-Maturity (YTM) of 18.15 percent. The medium to long end of the curve represented the remaining 51 percent at an average YTM of 18.42 percent.
Market sentiment is expected to stay positive, with continued participation from institutional and retail investors seeking stable returns amid easing inflationary conditions.
Prices Drop for Fuel and Beverages as Cedi Holds at GH¢10.44
Reflecting the disinflation trend, prices at the pump and in the market are easing:
Tampico 1L is now GH¢14.00, down by 17.65 percent from GH¢17.00 in August 2024
Goil Super XP fuel is selling at GH¢12.88/litre, a 14.70 percent decline from July 2024
The Bank of Ghana interbank exchange rate stands at GH¢10.44 per US dollar, showing relative stability in forex markets despite ongoing global headwinds.
Investor’s Insight: Agribusiness Holds Strong in 2025
Ghana’s agriculture sector grew by 6.6 percent in Q1 2025, driven by strong performance in crops and fishing. With demand for food rising both locally and across the subregion, agribusiness continues to be a resilient investment opportunity.
The growth reinforces the case for targeted investment in agri-value chains, logistics, and food processing, all essential components in Ghana’s path to food security and job creation.
Stay tuned to the Cedi Board® for real-time updates on Ghana’s financial pulse. From prices and policy to investment tips that help you make sense of the numbers.
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