Story by Phalonzy
A watershed moment has been reached in Ghana’s economic journey, with the country’s inflation rate experiencing a sharp decline to 13.7% in June 2025. This notable drop marks the sixth consecutive monthly decrease and the lowest level recorded since December 2021, underscoring a considerable reduction in inflationary pressures that have weighed on the economy in recent months.
According to the Ghana Statistical Service, the substantial decline from 18.4% in May is largely attributed to easing food prices and a general slowdown in price increases across key consumer categories.
Government Statistician Dr. Alhassan Iddrisu noted that “for the first time in a while, we are recording a month-on-month deflation of 1.2 percent between May and June, suggesting a real and sustained shift in price levels.”
The decline in inflation is evident across various sectors, with food inflation experiencing a remarkable drop of 6.5 percentage points to 16.3%, down from 22.8% in May. Non-food inflation also eased, decreasing by 3 percentage points to 11.4%. This downward trend offers a glimmer of hope for policymakers and businesses alike, especially as the government targets single-digit inflation by early 2026.
However, regional disparities remain stark, with the Upper West Region recording the highest inflation rate at 32.3%, largely driven by rising food and utility costs. In contrast, the Bono Region posted the lowest rate at 8.4%. Dr. Iddrisu emphasized the need for more localized, granular data in policy planning to address these regional imbalances and sustain the national disinflationary trend.
“The downward inflationary trend over the last six months provides some consistency and assurance of a real, sustained shift in prices,” he added.
This development signals a positive trajectory for Ghana’s economy, with the government and policymakers optimistic about achieving single-digit inflation in the near future. Undoubtedly, as the country continues to navigate its economic landscape, the sustained decline in inflation offers a promising outlook for economic stability and growth.
