Accra: The rate of inflation slowed to 18.4 per cent year-on-year in May compared with 21.2 per cent in April 2025, marking the lowest rate since February, the Ghana Statistical Service said on Wednesday. This represents the fifth consecutive year-on-year decline in inflation, indicating a return to price stability in the economy.
According to Ghana News Agency, Dr. Alhassan Iddrisu, the Government Statistician, stated that the monthly inflation stood at 0.7 per cent, slightly down from 0.8 per cent in April, pointing towards short-term price stability. He noted that core inflation eased to 18.5 per cent, suggesting a moderation in underlying inflationary pressures.
Dr. Iddrisu highlighted that food inflation fell to 22.8 per cent, while non-food inflation declined sharply to 14.4 per cent. Goods inflation remained higher at 20 per cent compared to services inflation at 14.3 per cent, with goods contributing 79 per cent to the overall inflation. He identified non-durable goods as the primary driver of Ghana's inflation, contributing 10.1 percentage points to the headline inflation of 18.4 per cent.
The statistician also mentioned that services inflation in Ghana recorded a modest 0.7 per cent rise in May 2025, contributing 0.19 percentage points to the headline rate. He observed that locally produced goods inflation dropped more than imported items, with decreases of 3.5 and 1.3 percentage points, respectively.
The top contributors to inflation included yam, smoked herring, fish, vegetable oil, and ginger, primarily food items. Regionally, Upper West recorded the highest inflation at 38.1 per cent, driven by high food, education, and utilities inflation. In contrast, Ahafo Region posted the lowest rate at 14.5 per cent, with 15 out of 16 regions recording year-on-year declines.
Dr. Iddrisu noted that the overall trend showed sustained disinflation, possibly influenced by factors such as a strengthened cedi, tighter monetary policy, fiscal consolidation, and positive market sentiments. He expressed cautious optimism that this trajectory would continue, offering relief to households and creating a more stable environment for businesses and investors.
Regarding food inflation, Dr. Iddrisu advised households to adopt bulk purchasing, shared food buying, and consider local, in-season produce to reduce food costs. He also suggested limiting discretionary spending on items like restaurants and recreation, which experienced 18.5 per cent inflation. Given the 20.1 per cent inflation in health, households were encouraged to prioritize preventive care and utilize NHIS benefits to avoid high out-of-pocket expenses.
For businesses, Dr. Iddrisu recommended reducing cost pressures by sourcing locally, as local inflation was easing faster than imported inflation. He advised businesses to strengthen local sourcing and reduce reliance on volatile inputs amid high inflation in food and imported goods. He emphasized the importance of avoiding sharp price hikes and building customer trust through transparent pricing, tailoring distribution, and pricing strategies to reflect regional inflation differences, particularly in the north.
Dr. Iddrisu urged the government to continue supporting macroeconomic policies that keep the cedi stable, reinforcing the disinflation trend. He called for targeted interventions in food logistics, utilities, and education access in high inflation regions like Upper West, which was still recording inflation above 38 per cent. He suggested investing in post-harvest storage, transport infrastructure, and irrigation to stabilize food prices further and protect vulnerable groups through expanded targeted social protection in high-inflation regions and sectors, especially where food and education costs are rising. The government was encouraged to promote local production by supporting SMEs and agribusinesses to strengthen domestic supply chains and align monetary and fiscal policies through collaboration with the Bank of Ghana to monitor inflation drivers and evaluate the need for cautious monetary tightening if pressures persist.