Ghana’s inflation rate has fallen to its lowest in more than three years, offering households and businesses a rare sigh of relief. But the Ghana Statistical Service (GSS) says this moment of calm won’t last unless the government takes bold, region-specific action, especially on food.
The year-on-year inflation rate for June dropped sharply to 13.7%, down from 18.4% in May. It’s the sixth consecutive monthly drop and the lowest since December 2021. Even better for consumers: prices actually fell by 1.2% between May and June.
But the GSS, in its official release, issued a firm caution: “Since food remains the dominant inflation driver, government should continue to invest in transport infrastructure, irrigation, food storage, and market linkages, particularly in the North, where food inflation is high.”
Food inflation remains stubborn, contributing more than half of the overall rate, 7 out of the 13.7 percentage points recorded. In the Upper West Region, overall inflation stood at a staggering 32.3%, with food prices playing a central role.
The GSS says a one-size-fits-all policy approach won’t work. “Blanket policies will not be effective given wide regional disparities in inflation,” the Service warned. It’s urging government to “expand targeted LEAP support, NHIS outreach, school feeding programmes, and undertake price monitoring in high-inflation areas to ensure equity in response.”
Beyond social protection, the GSS is pushing for macroeconomic discipline. “Lock in the inflation gains and stay the course on fiscal consolidation, implementation of strategic growth initiatives and appropriate monetary policy,” the release advised.
The call comes at a critical time. With food and utility costs still straining household budgets, and rent, refuse disposal, and electricity among the top contributors to inflation, policymakers are being warned not to get comfortable.
