Goods inflation in Ghana rose to 20.1% in May 2025, outpacing services inflation, which stood at 14.3%, according to the latest Consumer Price Index (CPI) report from the Ghana Statistical Service. The data shows that physical goods, particularly food and other non-durables, were the dominant drivers of headline inflation, contributing nearly 80% to the 18.4% overall rate.
This divergence between goods and services points to the ongoing cost pressure on everyday consumer essentials. The inflation gap reflects the direct impact of food prices, fuel, and household commodities on Ghanaian households, even as broader disinflation trends continue.
Goods inflation continues to exert disproportionate weight on the CPI, with Non-durable goods alone contributing 10.1 percentage points to the headline inflation figure.
Food Items at the Core of Goods Inflation
Much of the goods inflation is traced to food items such as yam, smoked herring, vegetable oil, and ginger. Food inflation alone stood at 22.8%, making it the single largest category within the goods division.
Imported goods inflation also remained significant at 17.7%, though it was lower than the rate for locally produced goods at 22.7%. This contrast reflects the influence of domestic supply constraints and seasonal price swings, despite the cedi’s continued appreciation.
Services Inflation Shows Modest Growth
By contrast, services inflation remained relatively subdued at 14.3%, contributing just 0.19 percentage points to the overall inflation figure. Inflation in education, recreation, and communication services remained stable or declined slightly compared to April.
However, inflation in health-related services stood out, with a year-on-year increase of 20.1%. Ghanaians will have to manage their healthcare costs by taking advantage of NHIS coverage and prioritising preventive care.
Implications for Businesses and Policy
The clear divergence between goods and services inflation suggests that businesses operating in goods-dependent sectors, from food processing to retail, face sharper cost pressures than those in service industries. The CPI report recommends that firms prioritise local sourcing to mitigate import-related volatility and maintain price competitiveness.
For policymakers, the data reinforces the need to stabilise food supply chains, invest in local production, and reduce logistics costs, especially in high-inflation regions like the Upper West, where essential goods inflation remains acute.
As headline inflation trends downward, the structural composition of inflation reveals where pressures remain concentrated. Goods inflation continues to shape the lived reality of consumers and the cost base of businesses, making it a key area for targeted fiscal and supply-side policy responses.
