In a new development, even as Ghana’s macroeconomic picture begins to brighten, the average household budget tells a story of cautious expenditure.
According to KPMG’s 2025 West Africa Banking Industry Customer Experience Survey, necessities needed for daily survival continue to dominate how Ghanaians spend their money.
The survey shows that food, utilities, and transportation still dominate household expenses. This, KPMG says, is an indication that while inflation has eased and the cedi has stabilized somewhat, financial pressure at the kitchen-table level remains intense.
Food Still Takes the Biggest Bite
Food and dining sit firmly at the top of household spending, accounting for 61% of expenses. For many families, this is not about eating out or luxury choices, but about simply keeping meals on the table.
Although food inflation has slowed compared to the peaks of recent years, prices remain high relative to incomes. A trip to the market still requires careful calculation, substitutions, and smaller portions.
Households may feel relief from headline economic improvements, but their food baskets have not shrunk enough to free up money for other needs.
Utilities: The Next High Cost
Utilities, including electricity and water, rank second at 47%, reflecting costs that households cannot easily escape. Lights must stay on, water must flow, and data must be paid for, regardless of economic recovery.
For many Ghanaians, even modest increases can upset already tight budgets. As a result, families often cut back elsewhere just to stay current on essential services.
Transportation Slides, But Still Matters
Transportation now ranks third, dropping from second place last year. This shift suggests some easing in fuel prices and commuting costs, but transport remains a major expense for workers, traders, and students.
Whether it is trotro fares, fuel for private vehicles, or ride-hailing costs, getting from home to work still takes a noticeable share of household income. The decline in ranking reflects relief, not comfort.
Recovery Without Relief for Discretionary Spending
The broader economy may be stabilizing. Inflation has cooled, exchange rate pressures have eased, and policy tightening has slowed. But the survey shows that households are not yet confident enough to spend freely.
Discretionary spending on items such as entertainment, travel, or non-essential shopping remains subdued. Families are choosing caution over consumption, saving where possible or simply managing risk in case conditions worsen again.
What the Spending Pattern Really Says
KPMG’s findings reveal that macroeconomic recovery does not automatically translate into household comfort. When food, utilities, and transportation continue to dominate spending, it means families are still focused on survival, not progress.
Until incomes rise more meaningfully and essential costs fall further, Ghana’s recovery will feel real on paper but restrained in everyday life. For now, most households are steadying themselves, not celebrating.
