Ghana’s annual inflation rate fell slightly in February 2025, dropping to 23.1 percent from 23.5 percent in January, marking the second consecutive month of decline.
The latest figures, released by the Ghana Statistical Service (GSS), indicate that the downward trend was primarily driven by a 1.8 percentage point reduction in food inflation.
Speaking at a press briefing on 5th March 2025, Government Statistician, Prof. Samuel Kobina Annim, highlighted that the decrease in food inflation had been consistent over the past four months.
“In the last four months, you’ve seen a consistent decline in food inflation on a month-on-month basis, dropping by 2.0 percentage points between November 2024 and February 2025,” he stated.
Despite the decline, Prof. Annim noted that the annual inflation rate for February was still the third-highest recorded in the last ten months, underscoring the persistent economic challenges facing the country.
Food and non-food inflation trends
Food inflation for February 2025 stood at 28.1 percent, down slightly from 28.3 percent in January, reflecting a 1.8 percent month-on-month decrease. However, several food items still recorded price increases, including vegetables, tubers, cooking bananas, and pulses (28.1 percent); ready-made food and other food products (45.5 percent); cereals and cereal products (38.6 percent); and fish and seafood (26.5 percent).
Non-food inflation also saw a marginal decline, dropping to 18.8 percent in February from 19.2 percent in January, representing a 0.9% reduction.
Regional disparities in inflation
The Upper West Region recorded the highest regional inflation rate at 35.5 percent, with food inflation alone surging to 49.8 percent, making it the region most affected by price increases. The Savannah Region followed closely with a food inflation rate of 48.6 percent. In contrast, the Volta Region registered the lowest inflation rate at 18.1 percent, reflecting significant regional disparities in price movements.
Macroeconomic concerns and outlook
Although inflation has continued to decline, Ghana’s economic recovery remains fragile. The Consumer Price Index (CPI) for February 2025 stood at 255.9, up from 207.8 in February 2024, indicating a 23.1 percent increase in general price levels year-on-year. Month-on-month inflation between January and February 2025 was recorded at 1.3 percent, compared to 1.7 percent in the previous month.
Ghana continues to battle economic turbulence, with the effects of a struggling cocoa and gold sector impacting overall fiscal stability. Inflation remains well above the Bank of Ghana’s target range of 6-10 percent, with policymakers warning that it will take longer for inflation to stabilise within the target band.
Source: GraphicOnline
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