The year-on-year inflation rate declined to 13.7 per cent in June 2025, the lowest since December 2021, according to data released by the Ghana Statistical Service (GSS) on July 2.
This marks the sixth consecutive month of decline, falling sharply from 18.4 per cent in May.
The GSS attributed the decline to a rare month-on-month deflation of 1.2 per cent between May and June, describing it as a notable shift in price levels.
The continuous fall in inflation is seen as a sign of easing cost pressures that have gripped the economy in recent months. The data suggests that ongoing fiscal and monetary interventions may be yielding results, creating a more stable economic environment for households, businesses, and policymakers.
A significant drop in both food and non-food inflation contributed to the national decline. Food inflation fell from 22.8 per cent in May to 16.3 per cent in June, while non-food inflation dropped to 11.4 per cent from 14.4 per cent. Both locally produced and imported goods reflected slower price increases. Inflation for locally produced items declined to 14.0 per cent from 19.2 per cent, while imported goods recorded a drop from 16.4 per cent to 12.5 per cent over the same period.
However, the national average masked stark regional differences. The Upper West Region recorded the highest inflation at 32.3 per cent, driven by rising food and utility costs, whereas Bono East posted the lowest rate at 8.4 per cent. The GSS called for deeper regional data analysis to tailor responses and sustain national progress.
Core inflation, which excludes items with volatile prices such as energy and transport, dropped sharply to 8.3 per cent in June from 19.5 per cent in May. On a monthly basis, goods inflation declined by 1.2 per cent and services inflation by 3.3 per cent, indicating broad-based easing across consumer categories.
The composition of inflation also shifted notably. While previous months saw high inflation in staples such as charcoal, yam, cooked rice, and smoked herrings, June figures indicated notable price declines in these items. At the same time, costs associated with rent, electricity, and refuse disposal continued to exert upward pressure on prices.
The sharp five-percentage-point drop in headline inflation is expected to bolster confidence in the government’s target of reaching single-digit inflation by early 2026.
Nevertheless, the GSS has advised households to remain cautious, recommending bulk purchases of foodstuffs, adoption of energy-saving practices, and stronger support for local production.
Businesses have been encouraged to increase local sourcing to reduce reliance on global supply chains and to adapt their pricing strategies to align with increasingly price-sensitive consumer behaviour.
The government, meanwhile, is urged to maintain its current fiscal path and continue implementing targeted social programmes to preserve the gains made.
