Ghana’s year-on-year inflation slowed to 11.5% in August 2025, down from 12.1% in July, marking the lowest level in nearly four years and the eighth consecutive monthly decline.
According to the Ghana Statistical Service (GSS), the sustained disinflation reflects easing food prices, a stronger exchange rate, and falling global cost pressures.
The latest Consumer Price Index (CPI) report shows that the average prices of goods and services rose by 11.5% between August 2024 and August 2025, while overall prices fell by 1.3% month-on-month between July and August 2025.
Food inflation remained the dominant driver of price trends. At 14.8%, food inflation, though still higher than the overall average, fell from 15.1% in July. Prices of key staples, including cereals, vegetables, and tubers declined, helping bring overall inflation lower.
On a month-to-month basis, food prices dropped 2.5%, providing relief to households after years of steep increases.
Non-food inflation also declined, slowing to 8.7% in August from 9.5% in July. Prices in categories such as clothing, housing, utilities, and transport showed moderation. Month-on-month, non-food prices slipped by 0.1%, signaling that cost pressures outside the food sector are also softening.
The report highlights that goods inflation fell to 13.9%, down from 14.2% in July. Overall prices of goods dropped 1.6% between July and August.
Services inflation also eased, underscoring that both tangible products and service costs are contributing to the broader disinflation trend.
One of the most notable factors behind the easing prices is the exchange rate. Imported inflation declined faster than local inflation, thanks to a stronger Ghana cedi and lower global cost pressures.
Inflation for imported items stood at 10.0%, compared to 12.9% for locally produced items, showing that external price stabilization is feeding into Ghana’s domestic market.
The inflation picture, however, varied across regions. The Upper West Region recorded the highest inflation at 21.8%, while Bono East had the lowest at 6.1%. These differences, the GSS noted, reflect supply chain dynamics, transport costs, and market access disparities.
Government Statistician Dr. Alhassan Iddrisu described the continued decline in inflation as evidence that Ghana’s economic stabilization measures are working.
From a peak of 23.8% in December 2024 to 11.5% in August 2025, the country has seen a 12.3 percentage-point drop in less than a year, providing a firmer foundation for economic growth, jobs, and investment.
The August data confirms that falling food prices, easing non-food costs, and a stronger cedi are the main forces behind Ghana’s disinflation.
While households are beginning to feel some relief, experts caution that regional disparities and local supply challenges need to be closely monitored to ensure that no area is left behind in the journey toward full price stability.
