Ghana’s steady disinflation in December 2025 was driven largely by a sharp slowdown in food prices, reinforcing easing cost-of-living pressures for households, according to data released by the Ghana Statistical Service (GSS).
Food inflation fell to 4.9 percent year on year in December, down from 6.6 percent in November and 27.8 percent in December 2024, representing a 22.9 percentage point decline within a year. Food accounts for about 43 percent of household expenditure, making its slowdown a major contributor to the broader decline in inflation.
“This matters because food accounts for about 43 percent of household spending. Lower food inflation directly eases pressure on household budgets,” Government Statistician Dr. Alhassan Iddrisu said while presenting the figures in Accra.
Despite the sharp annual decline, food prices rose by 1.1 percent month on month, reflecting short-term fluctuations linked largely to seasonal factors. Dr. Iddrisu noted that while such movements persist, they now occur within a clear downward trend.
The moderation in food prices helped pull headline inflation down to 5.4 percent year on year, marking the 12th consecutive month of disinflation and the lowest inflation rate since the Consumer Price Index (CPI) was rebased in 2021. Inflation fell from 6.3 percent in November 2025 and 23.8 percent in December 2024, a decline of 18.4 percentage points over the year.
On a month-on-month basis, overall inflation stood at 0.9 percent in December, indicating a modest rise in prices between November and December.
Beyond food, price pressures also eased across other major components of the CPI basket. Non-food inflation declined to 5.8 percent in December from 6.1 percent in November and 20.3 percent a year earlier, translating into a 14.5 percentage point annual reduction. Month on month, non-food prices rose by 0.6 percent, pointing to moderate residual pressure.
The data further showed a pronounced slowdown in goods inflation, which dropped to 5.8 percent in December from 7.3 percent in November and 23.1 percent in December 2024, a 17.3 percentage point fall over the year. Goods make up nearly three-quarters of the CPI basket, amplifying the impact of their disinflation on headline inflation.
Services inflation, however, edged up slightly to 4.5 percent in December from 3.8 percent in November, reflecting a 0.9 percent month-on-month increase. Even so, services inflation remains well below its 15.4 percent level a year earlier, representing a 10.9 percentage point annual decline.
Dr. Iddrisu said the figures point to broad-based disinflation, with easing price pressures recorded across food, non-food, goods, and both locally produced and imported items, signalling improving macroeconomic stability and a firm shift toward price stability.
