Ghana’s year-on-year inflation rate for June 2025 has fallen sharply to 13.7%, marking a significant decline from the 18.4% recorded in May. This marks the sixth consecutive month of falling inflation and represents the lowest rate since December 2021.
According to figures released by the Ghana Statistical Service (GSS) on Tuesday, July 2, the downward trend is being driven primarily by easing food prices and a general slowdown in the cost of goods and services.
For the first time in recent months, Ghana recorded deflation on a month-to-month basis, with prices falling by 1.2% between May and June 2025. This suggests that, on average, consumers paid less for goods and services in June compared to the previous month.
Government Statistician, Dr. Alhassan Iddrisu, described the development as a sign of sustained price stability and easing inflationary pressures.
“The downward inflationary trend over the last six months provides some consistency and assurance of a real, sustained shift in prices,” he said.
The latest data showed notable declines in both food and non-food inflation. Food inflation, a key driver of the overall index, dropped by 6.5 percentage points, from 22.8% in May to 16.3% in June. Non-food inflation also eased, falling to 11.4%, down by 3 percentage points from the previous month.
These declines suggest that government efforts to stabilize prices, such as currency management, subsidies, and improved domestic food supply may be having a tangible impact on household expenses.
Despite the national improvement, regional inflation disparities remain stark. The Upper West Region recorded the highest rate at 32.3%, primarily due to higher food and utility costs. In contrast, the Bono Region posted the lowest regional inflation at just 8.4%.
Dr. Iddrisu emphasized the need for region-specific data analysis to better understand and address the factors driving price disparities across the country.
“We must make use of granular data to understand the disparities in regional inflation if we want to achieve lower and more even inflation nationwide,” he urged.
Nonetheless, the consistent drop in inflation offers optimism for households, businesses, and policymakers. Lower inflation helps restore consumer purchasing power, supports interest rate easing by the central bank, and strengthens the macroeconomic environment for investment and growth.
