The Ghana Statistical Service (GSS) has announced that the country’s inflation rate dropped to 12.1% in July 2025, marking a notable decline from the 13.7% recorded in June.
This represents the third consecutive month of inflation decline, offering a glimmer of economic stability amid ongoing macroeconomic reforms and efforts to contain price pressures.
The year-on-year consumer price inflation figure means that, on average, prices of goods and services were 12.1% higher in July 2025 than they were in July 2024. The drop is seen as a positive signal for policymakers as it indicates a continued slowdown in the pace of price increases, especially after inflation spiked in 2022 and early 2023.
According to Government Statistician Prof. Samuel Kobina Annim, the deceleration in inflation was primarily driven by a reduction in non-food inflation, which fell from 15.6% in June to 14.0% in July. Meanwhile, food inflation also saw a marginal decline from 11.5% in June to 10.8% in July.
Transport, housing, and utilities — which have traditionally been among the highest contributors to inflation — saw modest price increases compared to the previous month. Prof. Annim noted that the drop in inflation was particularly influenced by reduced price growth in items such as electricity, water, fuels, and public transportation.
The regional inflation rate analysis showed that the Greater Accra Region recorded the lowest inflation rate at 8.9%, while the Upper East Region topped the chart with 16.4%.
Despite the downward trend, analysts caution that inflation rate remains above the central bank’s medium-term target band of 6% to 10%, which means continued vigilance is required from monetary authorities.
The Bank of Ghana is expected to take the latest inflation data into account when it announces its next Monetary Policy Rate decision later this month.
Economists say the declining inflation, if sustained, could pave the way for lower interest rates and improved consumer confidence — factors considered critical to stimulating economic recovery and growth.
Source – My News Ghana
