Despite a sharp decline in Ghana’s headline inflation to 13.7% in June 2025, down from 18.4% in May, key utility-related costs, particularly electricity, rent, and refuse disposal, continue to exert significant pressure on household budgets, according to the latest Consumer Price Index report from the Ghana Statistical Service (GSS).
While the national inflation rate recorded its lowest level since December 2021, the data reveals that several non-food essentials remain among the top contributors to price increases. Electricity recorded a year-on-year inflation rate of 139.3%, while rent surged by 86%, and refuse disposal rose by 130.9%, making them the three most inflationary items in the June data set.
These items collectively contributed more than 4 percentage points to the 13.7% headline rate, with rent alone accounting for 2.3 points, the single largest item-level contribution. Electricity followed closely, contributing 1.2 points, while refuse disposal added 0.7 points.
This trend reflects ongoing structural cost pressures in Ghana’s housing and utility sectors, even as general price levels declined by 1.2% month-on-month. The elevated utility costs stand in contrast to declining food inflation, which fell from 22.8% in May to 16.3% in June, and contributed a smaller 7 percentage points to the headline figure.
According to the GSS, these non-food inflation hotspots require targeted policy attention. “With electricity, refuse disposal, and rent being among the biggest drivers of inflation, households should explore energy-saving practices,” the report advises, adding that government efforts must also address underlying infrastructure and pricing reforms in these sectors.
The persistence of high inflation in utilities and rent also underscores the risks facing urban consumers, especially in high-density regions like Greater Accra and Ashanti, which together contributed nearly 7 percentage points to national inflation.
As Ghana continues to experience broader disinflation across most goods and services, analysts warn that essential services-related inflation could limit the pace of real relief for consumers unless addressed through utility cost controls and expanded housing supply.
The GSS is calling for sustained fiscal discipline, infrastructure investment, and region-specific policy interventions to consolidate gains in price stability while addressing bottlenecks in critical service sectors.
