Ghana’s year-on-year inflation rate has taken a major dive, falling to 13.7% in June 2025 from 18.4% the previous month, marking the lowest level in more than three years and the sixth straight month of decline.
The latest data, released by the Ghana Statistical Service (GSS) on Tuesday, July 2, points to a decisive shift in the country’s inflation trajectory, driven largely by falling food prices and a broader slowdown in the cost of goods and services.
In a significant development, the country recorded deflation on a month-to-month basis, with prices falling by 1.2% between May and June, suggesting consumers paid less in June than they did the month before.
Government Statistician Dr. Alhassan Iddrisu described the trend as an encouraging sign of sustained price stability.
“The downward inflationary trend over the last six months provides some consistency and assurance of a real, sustained shift in prices,” he stated.
Food inflation, the most volatile component of the inflation basket, plummeted from 22.8% in May to 16.3% in June—a drop of 6.5 percentage points. Non-food inflation also eased, falling from 14.4% to 11.4%.
The trend suggests that the government’s price stabilization measures—such as managing the exchange rate, boosting local food production, and targeted subsidies—are beginning to ease pressure on household spending.
However, inflation remains uneven across the regions. The Upper West Region recorded the highest rate at 32.3%, fueled by elevated food and utility costs, while the Bono Region registered the lowest inflation at 8.4%.
Dr. Iddrisu called for more localized analysis to tackle regional imbalances:
“We must make use of granular data to understand the disparities in regional inflation if we want to achieve lower and more even inflation nationwide.”
With inflation in retreat, economic watchers say the stage is set for stronger consumer confidence and greater monetary flexibility. Businesses and households alike stand to benefit from the easing cost-of-living pressures, while the Bank of Ghana may be positioned to consider interest rate cuts to stimulate growth.
As Ghana navigates its path to economic recovery, June’s figures offer renewed hope that the worst of the inflation crisis may be behind.
