The Chief Executive Officer of the Ghana National Chamber of Commerce and Industry (GNCCI) Mark Badu Aboagye has revealed that more businesses and manufacturing firms are expected to reduce prices of goods from July 1, 2025.

Mr. Badu Aboagye noted that most of the firms have been able to adjust their books, input cost and contracts with suppliers, to pass on the expected relief to consumers in the country.

He disclosed this on PM EXPRESS BUSINES EDITION with host George Wiafe on June 19, 2025. 

He, however cautioned that expectations for the reduction in prices must be measured.

“We should manage expectations on these reductions”, he said rejecting arguments that there must be a significant reduction in prices due to the time taken by manufacturing firms to adjust prices due to cedi’s appreciation.

“We should remember that some of these industries have already started reducing prices earlier this year, therefore what will happen from July 1, 2025 will be an addition to what has happened so far”, he explained.

Push for price reductions in line with cedi’s appreciation

There has been a strong push by government officials and consumers for businesses and industry to reduce their prices, in line with the appreciation of the cedi since April 2025.

However, industries and traders have argued that they need more time to respond to the development.

Mr. Badu Aboagye justified the stance of some the manufacturing firms in delaying the reduction in prices, arguing that the firms have been locked up in contracts that made it difficult to quickly adjust their prices.

“I strongly believe that based on the engagement with my members more of them will be adjusting their prices in the coming week”, he said.

Recent data released by the Ghana Statistical Service showed that the Year-on-Year Producer Price Inflation had dropped significantly to 10 percent in May 2025 from 18.5 percent in April 2025.

The development has led to some questions on why manufacturing companies are not reducing prices even if the appreciation of the cedi is not factored.

Mr. Babu Aboagye blamed the situation on cost of transport as he disclosed that manufacturing firms have reduced the ex-factory prices.

“Recent data from the Ghana Statistical Service on Consumer Price Index showed that local inflation was higher than imported inflation.  You can definitely deduce that, cost of production in Ghana is very high”, he said.

Utility Tariff Review

The Public Utilities Regulatory Commission (PURC) in the coming months is expected to announce new tariffs.

Mr. Badu Aboagye argued that the PURC must reduce tariffs in line current development in the economy.

“Inflation has been trending down, since the last review by the PURC, the cedi has appreciated by more than 40 percent and there is no justification for them not reduce tariffs”.

“If we want businesses to reduce their prices, reviewing tariffs is one of the surest ways that you can encourage businesses, before it will reduce their input cost”, he added.