More Firms to Cut Prices from July 1, But Adjust Expectations – GNCCI CEO

Businesses and manufacturers across Ghana are preparing to reduce prices beginning July 1, 2025, in response to the improving macroeconomic climate, but the Ghana National Chamber of Commerce and Industry (GNCCI) is urging the public to manage their expectations.

Speaking in interview, GNCCI Chief Executive Officer Mark Badu Aboagye said many firms have realigned their operations, reviewed cost structures, and renegotiated contracts, making them more agile in responding to recent economic gains, particularly with the strengthening of the Ghana cedi.

“Most manufacturing firms have now realigned their accounts, reviewed input costs, and renegotiated supplier contracts. This has positioned them to pass on cost reductions to consumers.” Badu Aboagye explained.

While he confirmed that more price reductions are on the way, he cautioned against expecting a rapid or dramatic drop across board.

“We should manage expectations on these reductions. What will happen from July 1, 2025, will be an addition to what has happened so far.” he emphasized.

Cedi Appreciation Fuels Demand for Lower Prices

Since April 2025, the Ghana cedi has appreciated by over 40 percent, bolstering government pressure on businesses to reflect the gains through lower consumer prices. However, businesses say price-setting is far more complex than currency movement alone.

“Some manufacturing firms were locked into contracts that limited their ability to respond quickly. Based on engagements with my members, more of them will be adjusting their prices in the coming week.” Badu Aboagye noted.

Industry leaders point out that while ex-factory prices have declined, other persistent costs, particularly in logistics and utilities, are keeping retail prices higher than expected.

Inflation and Input Costs Still a Challenge

The Ghana Statistical Service recently reported a sharp drop in Year-on-Year Producer Price Inflation, from 18.5% in April to 10% in May. Still, many consumers question why this isn’t translating into cheaper goods at market stalls and shops.

Badu Aboagye explained that underlying structural issues, such as high local production costs, continue to hamper price flexibility.

“Recent CPI data shows that local inflation was higher than imported inflation. You can definitely deduce that the cost of production in Ghana is very high,” he said.

Utility Tariffs Under Scrutiny

Turning to utility costs, the GNCCI boss called on the Public Utilities Regulatory Commission (PURC) to reflect macroeconomic gains in its upcoming tariff review. He argued that utility expenses remain one of the biggest contributors to production costs and a key factor slowing down price relief for consumers.

The GNCCI’s outlook reflects growing confidence in Ghana’s economic recovery, with more firms willing to adjust prices in response to improving indicators. But it also underscores the layered realities of cost structures in Ghana’s economy where price reductions depend not only on currency strength but on meaningful reforms in production, regulation, and utility pricing.

As July 1 approaches, consumers may see some relief, but the industry maintains that meaningful and sustainable price reductions will require collective effort and continued economic discipline.

Read More