By Adnan Adams Mohammed
Ghana has achieved a significant economic milestone, closing the year 2025 with the annual inflation rate dropping to a historic 5.4 percent.
This figure, down from 6.3% in November 2025, marks the twelfth consecutive month of decline and offers substantial relief to households navigating previously elevated price pressures.
Inflation, which stood at 23.8 percent in 2024, fell significantly to 5.4 percent in December 2025, marking a broad-based disinflation across both food and non-food items.
According to the Bank of Ghana, the improvement in price stability is the result of deliberate policy actions rather than chance.
“This trend reflected the broad-based disinflation process across both food and non-food. Certainly, this has not happened by accident but the result of sustained monetary discipline we brought on board, improved food supply and others,” the Governor, Dr Johnson Asiama said.
He explained that tight monetary policy, supported by improved food supply conditions, has helped ease inflationary pressures across the economy.
The Numbers: A Year of Progress
Data released by the Ghana Statistical Service (GSS) for December 2025 confirmed the positive trajectory. On a month-on-month basis, inflation stood at a subdued 0.9%, indicating minimal price increases toward the end of the year.
The sustained decline was primarily driven by a slowdown in food prices. Food inflation eased significantly to 4.9% in December, down from 6.6% the month prior, reflecting slower price increases for key food items and improved supply conditions.
This performance stands in stark contrast to the start of the year; 2024 closed with inflation at a towering 23.8%. The dramatic drop to 5.4% by year-end 2025 signifies a broad-based improvement in price stability across both food and non-food items.
BoG Credits “Sustained Monetary Discipline”
The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, attributed the successful containment of prices to the central bank’s firm hand and deliberate policy actions.
Speaking during a courtesy call by the Asantehene, Otumfuo Osei Tutu II, Dr. Asiama stressed that the positive outcome was a result of strategic policy choices.
“Certainly, this has not happened by accident but the result of sustained monetary discipline we brought on board, improved food supply and others,” the Governor stated.
He explained that the tight monetary policy implemented by the central bank, supported by improved food supply chains, has effectively eased inflationary pressures across the economy.
The central bank has reaffirmed its commitment to maintaining this trajectory of price stability, which it views as crucial for supporting sustainable economic growth as the country moves forward into 2026.
The continued moderation in inflation suggests improving stability conditions, providing a strong foundation for the national economy and enhancing consumer purchasing power in the new year.
