Ghana’s year-on-year inflation rate dropped to 12.1% in July 2025, marking the seventh consecutive monthly decline and the lowest level since October 2021, the Ghana Statistical Service (GSS) has announced.
Government Statistician, Dr. Alhassan Iddrisu, attributed the continued decline to effective fiscal consolidation, monetary policy interventions, and exchange rate stability. He, however, warned of short-term price pressures despite the improving inflation trend.
“Prices are, on average, 12.1% higher now than in July 2024. This marks steady progress, but we still see marginal month-on-month increases,” he said at the release of the July Consumer Price Index (CPI) report in Accra on Wednesday.
The July CPI was recorded at 259.1, up from 231.0 in the same period last year. Month-on-month inflation increased by 0.7% between June and July.
Food inflation remained the dominant driver at 15.1 per cent, although it showed signs of slowing. Non-food inflation declined to 9.5%, marking a return to single digits.
According to Dr. Iddrisu, the top inflation contributors were food and non-alcoholic beverages, housing, water, electricity, gas, clothing and footwear, alcoholic beverages, tobacco, and recreational activities.
A significant difference was observed between inflation rates of local and imported goods. Locally produced items had a higher inflation rate of 12.9% accounting for 73% of the overall inflation while imported goods registered a 10% inflation rate.
Regional disparities also emerged, with the Central Region posting the lowest inflation at 7.7%, while the Upper West Region recorded the highest at 24.8%.
Dr. Iddrisu said these regional variations called for targeted interventions.
He urged the government to intensify research and price monitoring in high-inflation areas like Upper West and tailor social protection programmes such as the Livelihood Empowerment Against Poverty (LEAP), School Feeding and National Health Insurance Scheme (NHIS) to address local disparities.
He further encouraged households to adopt bulk purchasing and energy-efficient practices, and urged businesses to prioritise the use of local materials and simplify their product offerings to manage costs.
