Ghana’s year-on-year inflation rate declined markedly to 18.4% in May 2025, down from 21.2% in April. This marks the fifth consecutive month of disinflation and reflects the lowest inflation figure since February 2022, signaling a gradual return to price stability after a prolonged period of economic volatility.
The Ghana Statistical Service (GSS) attributed this improvement primarily to reductions in transport fares—driven by declining fuel prices—alongside easing pressures in the non-food inflation category.
Speaking at a press briefing in Accra, Government Statistician Dr. Alhassan Iddrisu noted that the drop in fuel prices at the pump led to lower transport fares, which had the most significant impact on the May inflation figures.
He added that non-food inflation had seen a considerable decline, reflecting a widespread easing of price pressures.
Dr. Iddrisu emphasized that although food continues to be a major contributor to overall inflation, the notable reduction in non-food inflation indicates a more balanced and widespread moderation in consumer prices.
The downward trend is being credited to a combination of factors, including tighter fiscal and monetary policies, relative stability in the exchange rate, and improved global price conditions.
Dr. Iddrisu explained that this trajectory highlights the impact of recent policy measures, the appreciation of the Cedi against major foreign currencies, favorable international price movements, and growing market confidence.
Additional evidence of easing price pressures is reflected in the Producer Price Inflation (PPI), which fell sharply to 18.5% in April from 24.4% in March.
This suggests a moderation of costs at the production level, which could eventually lead to further reductions in consumer prices.
Despite the positive developments, inflation remains significantly above the Bank of Ghana’s medium-term target of 8% (±2%).
The central bank continues to maintain a cautious monetary policy stance aimed at firmly anchoring inflation expectations.
At a recent Monetary Policy Committee (MPC) briefing, Bank of Ghana Governor Dr. Johnson Asiama noted that inflation risks were a key reason the MPC maintained the policy rate at 28%, despite the relative strength of the cedi and other positive macroeconomic indicators.
