Ghana’s inflation rate saw a slight decline in February 2025, with the overall annual inflation rate dropping to 23.1%, down from 23.5% in January.

The reduction, though marginal, reflects a steady downward trend, largely influenced by declining food inflation.

Government Statistician, Prof. Samuel Kobina Anim, announced the figures during a press briefing, highlighting that food inflation has been on a consistent downward trajectory over the past four months. He noted that this trend, if sustained, could further ease overall inflation in the coming months.

Food inflation, a key determinant of Ghana’s overall inflation rate, declined from 28.3% in January to 28.1% in February, marking a month-on-month drop of 1.8%. Prof. Anim explained that between November 2024 and February 2025, food inflation has been declining steadily at an average rate of 2.0 percentage points per month. This sustained drop has helped moderate the overall inflation rate, even as some food items recorded price increases.

Despite the general decline in food inflation, certain food categories still experienced notable price hikes, with vegetables, tubers, cooking bananas, and pulses increasing by 28.1%, ready-made food and other food products rising by 45.5%, cereals and cereal products climbing by 38.6%, and fish and seafood seeing a 26.5% increase. These increases indicate that while food inflation is trending downward, price pressures persist in specific essential food categories.

Non-Food Inflation Also Declines

Non-food inflation also contributed to the marginal reduction in the overall rate, dropping from 19.2% in January to 18.8% in February, representing a 0.9% decline. The moderation in non-food inflation suggests stability in prices for goods and services outside the food sector, helping to curb the overall inflationary pressures.

Inflation rates varied across different regions, with the Upper West Region recording the highest food inflation rate of 49.8%, followed by the Savannah Region, which had a food inflation rate of 48.6%. The Upper West Region also recorded the second-highest non-food inflation rate of 24.0%, further indicating the regional differences in price movements.

These regional disparities highlight the uneven distribution of inflationary pressures across Ghana, with northern regions experiencing significantly higher food inflation than the national average.

According to Prof. Anim, the 23.1% inflation rate in February 2025 is the third-highest in the last 10 months, underscoring that inflation remains a concern despite the marginal improvement. However, the consistent decline in food inflation suggests that further reductions in the overall inflation rate may be possible if this trend continues.

The drop in inflation comes amid government efforts to stabilize the economy, including monetary policies by the Bank of Ghana (BoG) and interventions to enhance food supply and control price surges. The central bank’s measures, such as tightening monetary policy and managing exchange rate fluctuations, have contributed to keeping inflation in check.

Analysts believe that if food inflation continues to decline, Ghana could see further reductions in overall inflation in the coming months. However, external factors such as global commodity prices, exchange rate fluctuations, and supply chain disruptions could still pose challenges to price stability.

Sustained government policies aimed at improving food production, managing fuel prices, and stabilizing the cedi will be crucial in determining the inflation trajectory for the rest of the year.

While the 23.1% inflation rate in February reflects a marginal improvement, it remains relatively high, meaning that the cost of living pressures persist for many Ghanaians. Policymakers and economic stakeholders will need to continue monitoring inflation trends and implement strategic measures to ensure long-term price stability.