Inflation drops to 14.6% in 2025 but food prices still high
Ghana’s inflation rate declined significantly in 2025, signalling improved macroeconomic conditions, but the cost of living remains high and continues to put pressure on households, Government Statistician Alhassan Iddrisu has said.
Speaking at the launch of the maiden Annual Inflation Report by the Ghana Statistical Service (GSS) in Accra, Dr Iddrisu described the trend as “real progress,” while cautioning that prices are still rising, though at a slower pace.
He explained that the new report goes beyond the usual monthly inflation updates by providing a deeper analysis of the factors driving price changes and their broader impact on the economy.
“Inflation is not just a number; it reflects the reality of everyday life. It determines whether a worker's salary can feed a family, whether businesses can plan with confidence, and whether government policies are working to improve people's lives,” he said.
According to the report, inflation declined consistently throughout 2025, recording 12 straight months of reduction. The annual average rate dropped to 14.6 per cent from 22.9 per cent in 2024, indicating a notable easing of price pressures.
Despite this improvement, Dr Iddrisu stressed that the decline does not mean prices have fallen.
“Lower inflation does not mean lower prices. Prices are still high; they are simply rising more slowly,” he explained.
He added that many households continue to struggle with the effects of previously high inflation levels.
The report identified food prices as the biggest contributor to inflation, accounting for more than half of the overall rate. It also revealed that nearly three quarters of inflation in 2025 was driven by locally produced goods, suggesting that the pressures were largely domestic.
Goods, particularly essential items such as food, fuel and housing, made up close to 80 per cent of total inflation, highlighting the strong influence of basic necessities on price trends.
Significant regional disparities were also recorded. The Upper West Region posted the highest average inflation rate at 24.9 per cent, while the Bono East Region recorded the lowest at 10.9 per cent.
“These differences matter because policies that work in Accra may not necessarily work in Wa,” Dr Iddrisu noted, calling for more targeted policy interventions to address regional variations.
While acknowledging that the decline in inflation offers some relief and improves planning conditions for businesses, he warned that sustaining price stability will require consistent policy discipline and coordination.
He stressed that reducing inflation is only part of the task, adding that maintaining low and stable prices over time will be even more challenging.
The report highlights key priorities including strengthening food systems, improving coordination between fiscal and monetary policies, addressing regional inequalities, boosting domestic production and enhancing data systems to support informed decision making.
Dr Iddrisu urged policymakers, businesses and the public to rely on data in shaping decisions, emphasising that evidence based policy is essential for long term economic stability and development.