PPI rise won’t significantly affect consumer prices – Analyst

Finance and Tax Analyst, Nelson Cudjoe Kuagbedzi, has stated that the marginal rise in Ghana’s Producer Price Inflation is unlikely to translate into significant increases in  prices paid by  consumers.

He says that although producers are facing higher costs, particularly from energy and utilities, the increase in producer inflation remains moderate and should have only a limited impact on final prices.

“To the extent that it is below 5 percent, I think there is no cause for alarm because at the end of the day, the transmission effect into the final price that consumers will be made to pay for may also be marginal.”

The comments follow the latest data from the Ghana Statistical Service, which shows that Producer Price Inflation rose to 4 per cent in July 2026, from 3.5 per cent in June.

Producer prices also increased by 2 per cent month-on-month in July, reversing a 3.7 per cent decline recorded in June. The rise was driven largely by higher gold prices and continued increases in utility costs.

The mining and quarrying sector recorded a significant increase, while electricity and gas posted annual inflation of 13.3 per cent. Water supply and waste management also recorded relatively high annual inflation of 10.1 per cent.

Mr. Kuagbedzi attributes the upward pressure on producer prices, mainly to developments in the energy sector.

“One of the major factors accounting for the marginal increase has to do with energy costs. We have seen a consistent increase in prices at the pump, and we have also seen some level of increment in water and electricity.”

Despite these pressures, he says there is currently no indication of significant increases in the prices of domestically produced goods.

“We don’t foresee any significant increment in the prices of goods that have been produced within the economy because even inflation itself is below 5 per cent.”

The analyst, however, expects headline inflation to rise marginally in August, citing renewed geopolitical tensions in the Middle East and their potential impact on fuel prices.

He nevertheless projects that inflation will remain below 5 per cent by the end of August, provided there are no major shocks to energy prices.

Source: Citi Business News