The Consumer Price Inflation for the month of May fell by 2.8 percentage points to 18.4% from 21.2% recorded in April 2025.
The decline largely attributed to “effectiveness of recent monetary and fiscal measures” gives an indication of a stable price environment in the short term with no sharp spikes in consumer prices in recent months.
Addressing a news conference in Accra, the Government Statistician, Dr. Alhassan Iddrisu noted the period of disinflation will continue in the months ahead to fully reflect how the market is responding to the gains of the cedi against major trading currencies. “The inflation trend we are witnessing shows sustained deceleration”, he said.
According to the Ghana Statistical Service (GSS), the May 2025 inflation represents a fifth consecutive decline year-on-year; lowest since February 2022, and the sixth consecutive decline in month-on-month inflation. Part of the reasons given for the significant decline in inflation includes recent appreciation of the cedi against major international currencies, favorable external price dynamics and positive market sentiments among others.
Food inflation remains high amongst all the items in the CPI basket hovering around 22.8% against non-food inflation of 14.4%. Yam, smoked herring, fish, vegetable oil and ginger were the top contributors to food inflation y-o-y in May recording 41.5%, 22.7%, 33.7%, 65.0% and 139.1% respectively, while charcoal, restaurants, chicken and electricity occupied the bottom of items in the basket at 29,4%, 16.5%, 31.9% and 31.4% respectively. However in the regional breakdown of inflationary activities, the Upper West recorded the highest inflation of 38.1% contributed by food, education and utilities. The Ahafo Region on the other hand posted 14.5% inflation signifying the lowest, therefore 15 out of 16 regions of the country recorded y-o-y declines including Greater Accra that recorded an inflation of 15.5%.
As the rate of inflation on both imported items and locally produced items fell in the month of May to 16.4% and 19.2% from 17.7% and 22.7% respectively, the GSS recommended to businesses to endeavour to source raw materials locally in order to reduce cost pressures as local inflation eased faster than imported inflation; strengthen local sourcing and reduce reliance on volatile input given high inflation in food and imported goods. The national statistics agency also warned entrepreneurs against price gouging and rather build customer trust through transparent pricing.
