The Institute of Statistical, Social and Economic Research (ISSER) is calling for measures to increase household incomes, warning that falling inflation alone will not ease the cost-of-living pressures facing many Ghanaians.
Head of the Economics Division at ISSER, Professor Fred Dzanku, says the slowdown in inflation should not be mistaken for a reduction in the prices of goods and services, as households continue to grapple with affordability challenges.
Speaking at the launch of the 2025 State of the Ghanaian Economy Report, he explained that although inflation has declined considerably, prices may continue to rise, albeit at a slower rate.
“Even though inflation, which is measuring the rate of increase in prices, have reduced considerably, it doesn’t mean prices have fallen,” Professor Dzanku said.
He stressed that improving household incomes is necessary to help consumers cope with the cost of living, noting that higher earnings would increase disposable income and enable people to afford essential goods and services.
“What we need to do really is to see how do we increase the incomes of households. Because when your income increases, your disposable income increases, you are better able to afford the same commodity,” he added.
Professor Dzanku said the persistent difficulty households face in paying for goods and services partly explains why improvements in economic indicators have yet to translate into noticeable relief for many consumers.
“That’s why people normally will say that we are not feeling it in our pocket, because they don’t have money,” he said.
His remarks highlight the need for policies that go beyond stabilising prices to address income levels and purchasing power, ensuring that economic improvements translate into better living conditions for households.
For Ghana, the challenge remains to ensure that easing inflation is accompanied by stronger household earnings and greater affordability, allowing ordinary citizens to experience more tangible benefits from the country’s economic recovery.
