Ghana has achieved a significant milestone in its economic recovery efforts as inflation for June 2025 fell sharply to 13.7%, the lowest level recorded since December 2021.
The development marks a major turnaround from the persistent cost pressures that have weighed on households and businesses in recent years.
According to new data released by the Ghana Statistical Service (GSS) in Accra on July 2, 2025, the country has now recorded six straight months of declining inflation, signaling that efforts to stabilize the macroeconomic environment may be bearing fruit.
The June figure represents a dramatic drop from the 18.4% rate posted in May 2025, amounting to a 4.7-percentage-point decline within a single month. The downward trend has been welcomed by policymakers and market watchers alike, who see the consistent easing of price pressures as a sign of a sustained shift toward stability.
Government Statistician Dr. Alhassan Iddrisu emphasized the significance of the trend, stating, “The downward inflationary movement over the last six months provides some consistency and assurance of a real sustained shift in prices.”
Food Prices Drive Overall Decline
One of the main factors behind the June inflation drop was a marked easing of food price increases. The data show that food inflation fell by 6.5 percentage points to 16.3%, down from 22.8% in May. Non-food inflation also contributed to the broader decline, dipping by 3 percentage points to 11.4%.
The slowdown in food inflation was particularly important given that food remains the single largest component of household spending for most Ghanaian families. As such, lower food price growth is likely to have an immediate impact on living costs and disposable incomes.
For the first time in several months, the overall price level did not just slow its ascent but actually declined from May to June, resulting in deflation of 1.2% over the month. This means Ghanaians on average paid less for goods and services in June compared to May—an encouraging development after a prolonged period of high inflation.
Despite the national decline, the data revealed stark regional disparities. The Upper West Region recorded the highest year-on-year inflation rate at 32.3%, mainly driven by persistent food price pressures and rising utility costs. Conversely, the Bono Region posted the lowest regional inflation at just 8.4%, demonstrating how uneven the impact of inflation continues to be across the country.
Dr. Iddrisu called for greater use of granular data to understand and address these regional disparities, stressing that targeted interventions could help bring down inflation in the hardest-hit areas.
“Regional dynamics cannot be overlooked. To sustain the current progress, policymakers must drill deeper into the causes of inflation disparities and design measures that respond to unique local conditions,” he remarked.
Reactions and Implications
The sharp decline in inflation has been greeted positively by many stakeholders. Economists have noted that slowing inflation could help ease pressure on interest rates, improve consumer confidence, and support the broader economic recovery.
Business owners have also expressed cautious optimism, noting that stable prices will make planning easier and reduce uncertainty in procurement and operations.
However, some experts have cautioned that while the current trend is promising, Ghana remains vulnerable to external shocks—including commodity price volatility and currency fluctuations—that could reignite inflation pressures.
Outlook for the Second Half of 2025
Meanwhile, analysts say the coming months will be critical in confirming whether the downward trajectory can be sustained. Key factors to watch will include global food prices, exchange rate movements, and domestic supply chain conditions.
The government is expected to continue tightening fiscal discipline and supporting agricultural production to sustain price stability. Monetary authorities are also likely to maintain vigilance to prevent any reversal of the hard-won gains.
As Dr. Iddrisu noted, “This is not the time to be complacent. We must remain focused on policies that reinforce the progress made and protect the welfare of all Ghanaians.”
The June 2025 inflation data offers a rare dose of optimism in an economy that has been characterized by uncertainty and hardship in recent years. With inflation now at its lowest point in over three years, Ghanaians have good reason to hope that the tide has turned—and that a more stable and predictable economic environment is finally within reach.
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