…Now at 11.5% in August 2025, beating end-year target.
Ghana’s headline inflation has again eased further to 11.5% in August 2025, down from 12.1% in July, according to the latest figures released by the Ghana Statistical Service (GSS).
This marks the eighth consecutive month of decline in the country’s inflation rate and brings the figure below the government’s end-of-year target of 11.9%. The development is being seen as a clear signal of stronger price stability in the economy after a turbulent period of high inflation that stretched households and businesses.
The August outturn also represents the lowest inflation recorded in almost four years, dating back to 2021.
On a month-to-month basis, overall prices fell by 1.3%, offering some immediate respite to consumers and marking a rare instance of outright price declines in the domestic economy.
Dr. Alhassan Iddrisu, the Government Statistician, in his official address on Wednesday, September 3, 2025, explained that food inflation slowed to 14.8% in August, down slightly from 15.1% in July.
Within the month, food prices dropped significantly by 2.5%, reflecting improved supplies of locally produced staples such as maize, yam, tomatoes, and plantain.
Seasonal harvests, better storage facilities in some areas, and reduced market disruptions contributed to this decline.
Non-food inflation also moderated, easing to 8.7% compared to 9.5% in July. Prices of non-food items such as clothing, household goods, and utilities registered a slight reduction of 0.1%, pointing to improved supply conditions and a relative stability in utility tariffs.
Inflation for goods declined to 13.9% from 14.2% in July, with overall prices of goods falling by 1.6%. Services inflation, meanwhile, remained relatively stable, suggesting that while consumer goods are easing in price, services such as education, health, and hospitality are experiencing slower adjustments.
Imported inflation eased more sharply than domestic inflation, supported by a stronger Ghanaian cedi and a decline in global cost pressures.
The cedi’s relative stability against the US dollar and other major currencies has reduced the cost of imported fuel, food, and industrial inputs, helping to moderate inflationary pressures on households and businesses that depend heavily on imports.
A drop in global oil and freight prices also provided further relief, allowing businesses to pass on some of these savings to consumers.
Despite the positive national trend, the GSS cautioned that inflation continues to vary sharply across Ghana’s 16 regions. Some regions, particularly those with poor road networks and high transportation costs, continue to experience stubbornly high prices for food and other essentials.
Differences in local agricultural output, market access, and infrastructure have created these disparities.
However, concerns remain about the broader economy’s growth momentum. Many economists caution that while falling inflation improves purchasing power, it does not automatically translate into stronger growth or increased job creation.
Ghana continues to grapple with structural challenges, including slow industrialization, limited value addition in agriculture, high unemployment among the youth, and weak productivity growth.
For ordinary Ghanaians, the drop in inflation is a welcome development, but many remain cautious. Market surveys suggest that while prices are falling in statistical terms, consumers are still adjusting to the cumulative effects of years of high inflation.
By Prince Ahenkorah