Daniel A. Anim-Prempeh is an economist and a private legal practitioner
Economist and private legal practitioner, Daniel A. Anim-Prempeh, has revealed that despite the significant drop in the Producer Price Inflation (PPI) for May 2025, Ghanaians are yet to feel its impact.
According to him, while the drop in PPI suggests easing cost pressures on producers, the improvement must be sustained over time before it can translate into a better standard of living.
His comment follows the announcement by the Ghana Statistical Service(GSS) of a drop in the PPI from 18.5% in April to 10.25% in May 2025, the lowest rate recorded since 2023.
In an exclusive interview with GhanaWeb Business on Saturday, June 21, 2025, Anim-Prempeh explained that if the current gains are maintained, they could potentially lead to a reduction in the cost of goods and services on the market.
“With such an improved performance, why are people not feeling it in their pockets? It may lead to an improved standard of living if this performance is maintained consistently over time. What it means is that with income levels remaining the same, people will be able to acquire more goods and services because prices will fall,” he noted.
He also cautioned that, for such progress to be sustained and widely felt, structural challenges must be addressed particularly in line with the cost of power and access to affordable capital for businesses.
“We must also pay attention to key factors that may affect the PPI, such as the cost of power or utilities, and also the cost of capital. The cost of capital is very high, and manufacturers are borrowing at high rates,” he added.
Ghana’s PPI has shown a steady decline in recent months, signaling some recovery momentum amid ongoing economic reforms.
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