Ghana Inflation Slows for 7th Straight Month to Reach Four-Year Low
TLDR
- Ghana’s inflation rate dropped to 12.1% in July 2025, down from 13.7% in June, marking the seventh consecutive month of decline
- That's the lowest level since October 2021, according to new data from the Ghana Statistical Service
- The decline represents a 1.6 percentage point monthly drop and an 11.7 percentage point fall from the December 2024 peak of 23.8%
Ghana’s inflation rate dropped to 12.1% in July 2025, down from 13.7% in June, marking the seventh consecutive month of decline and the lowest level since October 2021, according to new data from the Ghana Statistical Service.
The decline represents a 1.6 percentage point monthly drop and an 11.7 percentage point fall from the December 2024 peak of 23.8%. Month-on-month inflation stood at 0.7%, indicating price growth is slowing, but not reversing.
Food inflation eased to 15.1% in July from 16.3% in June, still contributing more than 50% of the headline rate. Non-food inflation, encompassing sectors such as housing and transport, declined more sharply to 9.5% from 11.4%.
Both food and non-food prices still rose slightly month-on-month—by 0.6% and 0.7%, respectively—showing that while disinflation is underway, consumers are still facing rising costs.
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Key Takeaways
Ghana’s continued disinflation is a positive sign for macroeconomic stability and may influence future monetary policy decisions by the Bank of Ghana. The consistent decline since early 2025 suggests that previous tightening efforts and currency stabilization are beginning to take effect. The sharper drop in non-food inflation reflects easing pressures in housing, transportation, and services, while food inflation—though declining—remains elevated and a key concern for household budgets. Month-on-month increases across both categories show that price levels are still rising, just at a slower rate. The central bank may be cautious in loosening policy too soon, especially given ongoing global commodity volatility and exchange rate sensitivities. With inflation now closer to the medium-term target range of 8 ± 2%, future monetary decisions will likely depend on how persistent the month-on-month increases prove to be, and whether fiscal consolidation stays on track ahead of Ghana’s 2026 election cycle.
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