Ghana’s June 2025 Consumer Price Index (CPI) shows that locally produced goods are leading the disinflation trend, registering sharper price drops than imported items and offering tangible benefits for both businesses and households.
According to data from the Ghana Statistical Service (GSS), year-on-year inflation for locally produced items fell to 14.0%, down from 19.2% in May, a significant 5.2 percentage point decline. In contrast, inflation on imported goods dropped from 16.4% to 12.5%, a more modest 3.9-point decrease.
Month-on-month price changes also favour domestic goods. Prices for local items declined by 1.1% between May and June, while imported goods saw a steeper 1.8% drop. Despite the sharper fall in imported prices over the month, the GSS highlights the more sustained disinflationary trend in local production.
“With inflation on locally produced goods declining faster than imported ones, businesses can reduce exposure to global supply shocks by increasing local sourcing, especially for food, packaging, and logistics inputs,” the GSS stated in its report.
For businesses, this trend offers a path to cost stability. By shifting to local suppliers, firms can hedge against international price volatility, reduce logistics risks, and benefit from shorter supply chains. The report encourages strategic pricing over sharp markups, given current consumer price sensitivity.
“Businesses could practice strategic pricing, not sharp increases, given the disinflation and even month-on-month deflation as consumers are more price-sensitive,” the GSS noted.
For households, easing prices of local goods, especially food, are beginning to provide relief. Food inflation, still the largest contributor to overall inflation, declined from 22.8% in May to 16.3% in June, while prices of food items fell by 0.5% month-on-month.
The GSS recommends that households take advantage of the trend.“Households should lean into bulk purchases of staples, buy local produce where possible, and favor in-season vegetables, cereals, and proteins, which are experiencing sharper price drops.”
The shift toward domestic goods is also aligned with broader macroeconomic goals. The GSS observed: “The disinflation process means some breathing room for households, a more predictable environment for businesses, and for our policymakers, a powerful signal that recent fiscal and monetary efforts may be taking hold and the need [to] stay the course.”
If sustained, the price correction in locally produced goods could support inflation control, encourage import substitution, and contribute to a more resilient economy. The trend also registers the call for continued government investment in local production, food supply chains, and infrastructure to lock in inflation gains and support long-term stability.
