Ghana’s inflation rate has fallen sharply to 18.4% year-on-year in May 2025, down from 21.2% in April. This marks the lowest rate since February 2022 and extends the country’s disinflation trend into its fifth consecutive month.
The Ghana Statistical Service (GSS) attributes the significant decline to reductions in transport fares and a marked slowdown in non-food inflation. Government Statistician, Dr. Alhassan Iddrisu, said the recent drop in fuel prices at the pumps, which influenced a nationwide adjustment in transport fares, played a major role in cooling inflationary pressures in May.
While food inflation remains elevated, it continued to ease, and services and transport-related costs recorded the steepest drop, providing some relief to household budgets. However, regional disparities in inflation rates persist, with the Upper West Region posting the highest inflation rate at 38.1%, driven largely by higher food prices and transport costs. In contrast, the Ahafo Region recorded the lowest inflation rate at 14.5%.
The latest inflation data is likely to bolster market confidence in the ongoing macroeconomic recovery and support the central bank’s monetary policy stance. The sustained easing in the pace of consumer price rises is a positive development for the economy, and stakeholders will be watching closely to see if this trend continues.
Source: Apexnewsgh.com/Ngamegbulam Chidozie Stephen
