ACCRA, Ghana — Ghana’s economy saw a steady cooling of price pressures throughout 2025, with inflation recording 12 consecutive months of decline, according to the Government Statistician, Dr Alhassan Iddrisu.
While the annual average inflation rate dropped significantly to 14.6% in 2025—down from 22.9% the previous year—officials warned that the figures do not necessarily mean things are getting cheaper for the average household.
“Lower inflation does not mean lower prices,” Dr. Iddrisu explained at the launch of the Ghana Statistical Service’s (GSS) first Annual Inflation Report. “Prices are still high; they are simply rising more slowly”.
Food Costs and Local Goods Lead the Surge
Despite the overall downward trend, the report highlights that the cost of living remains a heavy burden for many families. Key findings from the 2025 data include:
- Food as the Main Driver: Food prices accounted for more than half of the overall inflation rate, remaining the single largest factor in household spending.
- Domestic Pressures: Nearly three-quarters of the inflationary pressure was driven by locally produced items, suggesting that the crisis was largely domestic rather than imported.
- Essential Commodities: Goods such as food, fuel, and housing made up nearly 80% of total inflation.
A “Tale of Two Cities”
The GSS report also uncovered deep regional disparities, suggesting that economic relief is not being felt equally across the country.
The Upper West Region saw the highest average inflation at 24.9%, while the Bono East Region recorded the lowest at 10.9%. Dr. Iddrisu noted that these variations highlight a need for “location-specific” policies, arguing that strategies effective in Accra may not work in regions like Wa.
The Road Ahead
While describing the 12-month decline as “real progress,” the Government Statistician warned that maintaining this stability would be a significant challenge.
The GSS is calling for a shift toward evidence-based policy, focusing on strengthening food systems, boosting domestic production, and improving coordination between fiscal and monetary authorities to ensure long-term economic stability.
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