When Stability Doesn’t Reach the Market: Why Prices Remain High Despite Single-Digit Inflation

Ghana’s recent macro-economic progress—marked most notably by the return to single-digit inflation—offers a renewed opportunity for economic transformation. Yet, in my view, these gains will only become meaningful when they find expression in the lived experiences of ordinary citizens. As Mampruli proverb teaches, “The river is only useful when its waters reach the farms.” In the same spirit, national stability must flow into households, kitchens, and marketplaces where Ghanaian families feel the economic pressure most intensely.

Macroeconomic Gains vs. Market Realities

If inflation has dropped drastically and farm-gate prices have fallen sharply, why do retail prices remain unchanged across our markets? Mostly, for citizens to feel the impact of improved economic indicators, prices of basic commodities must respond accordingly. Goods such as kenkey, yam, rice, cement, charcoal, cooking oil, and everyday household essentials reflect the real economy far more accurately than any statistical report.

Before the NPP administration exited office in January 2025, inflation stood at 23.8%, with an exchange rate of $1 = GH¢14.57. During this period, prices of common goods included:

Before January 2025, the prices of basic commodities were as follows: a bag of cement sold for GH¢95, a bag of sachet water was GH¢7, and a ball of kenkey cost GH¢5 for the small size and GH¢7 for the large. A medium tuber of yam went for GH¢25, while Milo (400g) was priced at GH¢54, Nido (400g) at GH¢80, and Cerelac (400g) at GH¢40. Additionally, a small tin of milk sold for GH¢10, toothpaste (big sizes) ranged between GH¢15 and GH¢18, mosquito coil brands sold between GH¢15 and GH¢17, and a 2.2kg tin of Time Tomatoes cost GH¢39.

Today, Ghana records 6.3% inflation and an exchange rate of roughly GH¢10.90 to $1. Maize prices have dropped from GH¢1,000 per bag to GH¢250–300, and rice has fallen from GH¢1,000–800 to GH¢450–500. Yet prices of some commodities on the streets remain stubbornly high.

Why are Ghanaians still paying inflation-era prices in a period of economic stability? Despite drastic drops in inflation and major reductions in the wholesale price of maize and rice, urban food prices and prepared food costs remain unchanged. Vendors continue to sell kenkey, banku, T.Z, and porridge at the same prices as when inflation was above 23%. Neither has the size improved nor the quality increased.

This situation raises an uncomfortable question: Why do food vendors respond quickly to cost increases, but refuse to respond when costs fall? Similarly, the prices of charcoal, cooking oil, yams, and cement have reduced but surprisingly some vendors still sell at high prices, despite market conditions that should compel a downward adjustment.

In my view, this reveals a worrying trend in our market culture—one where prices move only in one direction: upwards.

The Private Sector’s Responsibility in a Stabilizing Economy

At what point will the private sector recognize its responsibility to pass on economic gains to the consumer? The government has delivered a more stable macro-economic environment: easing inflation, strengthening the cedi, and more predictable market conditions. Therefore, it is both reasonable and patriotic for businesses to respond by reducing prices in line with these improvements.

When inflation declines but prices remain rigid, the dividends of economic reform are lost. Yet, when businesses align their pricing with macro-economic realities, they help stimulate demand, improve consumer confidence, and create a cycle of growth that benefits everyone.

But then again, how sustainable is a business model that thrives on high prices even when operational costs have significantly reduced? And more importantly, should national progress depend solely on government actions while businesses maintain profit margins that burden citizens?

A National Partnership for Shared Prosperity

Should the government continue to bear the blame for high prices when the private sector refuses to adjust? Ghana develops most effectively when government and private actors move in harmony. As the wise saying goes, “The left hand washes the right, and the right hand washes the left.” The government has played its part; now businesses must complement these efforts by easing the burden on households.

This alignment is not simply a commercial decision—it is an act of national partnership and social responsibility.

Conclusion: Making Stability Meaningful

In conclusion, I am compelled to ask: If citizens do not feel relief in their pockets, can we truly say the economy is improving? National progress becomes meaningful only when macro-economic gains translate into everyday relief. Ghana’s improving inflation, stronger currency, and falling farm-gate prices must be mirrored in the prices citizens pay for food and essentials.

Thus, the ultimate question remains: What does it profit a nation to achieve stability on paper if the people continue to drown under the weight of unchanged prices? Let us, therefore, move together—government, private sector, and citizens—to ensure that Ghana’s economic recovery becomes a shared victory, felt in every home and reflected in every community.

By: Salifu Hamza Iddrisu