Although inflation declined in April, the sharp differences between food and non-food inflation, as well as between locally produced and imported goods, remain. This indicates that critical areas of inflation are not being adequately addressed by policy measures.
Ghana’s inflation rate dropped to 21.2% in April 2025, down from 22.4% in March, according to the Ghana Statistical Service (GSS). While this signals a positive trend in stabilising prices, the deeper story paints a more troubling picture for ordinary Ghanaians: food prices remain stubbornly high, and locally produced goods are rising faster in cost than imported ones.
April’s food inflation stood at 25%, compared to non-food inflation at 17.9%, highlighting a persistent and worrying gap. Even more concerning is that inflation for locally produced goods continues to outpace that of imported products. April inflation for locally produced items was 22.7% compared to 17.9 for the imported ones. This trend has been consistent even when the cedi was depreciating and could get worse with the current gain in the value of the cedi. This means consumers are feeling the pinch most where it hurts — their food baskets, and domestic producers are struggling to compete with imports.
Food is a necessity for every household, and unlike luxury items, it cannot be cut from daily expenses. The continued rise in food prices may mean more people are being forced to skip meals or settle for cheaper, potentially unsafe alternatives. This trend carries significant health risks and worsens inequality, as lower-income families bear the brunt of the increases.
Experts warn that high food inflation, particularly for staples like vegetables, tubers, and plantains signals deeper structural issues that require urgent policy attention.
In recent years, the Ghana Statistical Service has gone beyond headline inflation figures to provide detailed insights, such as sectoral breakdowns and local vs. imported inflation comparisons. These insights are meant to inform policy. Yet, despite this transparency, the policy response to these structural disparities has remained muted. Experts say if no targeted action is taken to narrow the gap between food and non-food inflation, and between local and imported price pressures, the ongoing decline in headline inflation will offer little relief to ordinary citizens.
Economists are calling on the government to invest in agriculture and local production to reduce food inflation sustainably. There are also demands to reduce the cost of doing business through tax relief, lower energy cost, and infrastructure support. Others suggest the need to strengthen food supply chains, especially for high-inflation items like ginger, beans, and vegetable oil. They argue that programmes like “Agriculture for Economic Transformation” should be fast-tracked to make local food production more competitive. And overall, supporting local businesses is seen as critical to enhancing productivity and job creation.
Without these steps, the inflation drop may look good on paper, but its impact will be felt only by a few, while the majority continue to grapple with rising prices and shrinking real incomes.
