Ghana’s inflation drops to 13.7% in June; lowest since 2021

Ghana’s year-on-year inflation for June 2025 has dropped to 13.7 per cent, marking the sixth consecutive monthly decline and the lowest rate recorded since December 2021.

The latest figures, released by the Ghana Statistical Service (GSS) on Tuesday, July 2, show a fall from the 18.4 per cent recorded in May 2025.

According to Government Statistician, Dr Alhassan Iddrisu, “For the first time in a while, we are recording a month-on-month deflation of 1.2 percent between May and June, suggesting a real and sustained shift in price levels.”

Dr Iddrisu described the consistent downward trend as an indication that “the pressures driving inflation over the past months are declining,” and noted that the disinflation provides “some breathing room for households, a more predictable environment for businesses, and for our policymakers, a powerful signal that recent fiscal and monetary efforts may be taking hold.”

The main drivers of the decline were a drop in food inflation, which fell from 22.8 per cent in May to 16.3 per cent in June; and non-food inflation, which dropped to 11.4 per cent from 14.4 per cent.

Prices for both locally produced and imported goods showed a general slowdown, with locally produced items recording a year-on-year inflation rate of 14.0 per cent, down from 19.2 per cent the previous month. Imported goods also saw a drop, from 16.4 per cent in May to 12.5 per cent in June.

On a regional level, disparities in inflation rates remain significant. The Upper West Region recorded the highest inflation at 32.3 per cent, more than double the national average, driven by surging food and utility costs. The Bono East Region registered the lowest inflation rate at 8.4 per cent. “We need to use more granular data to understand and respond to these regional variations if we want to sustain the national gains,” Dr Iddrisu urged.

Core inflation, which excludes volatile items such as energy and transport, plummeted to 8.3 per cent in June from 19.5 per cent in May, indicating that underlying inflationary forces are subsiding. The price of goods and services also saw broad declines, with month-on-month inflation for goods falling by 1.2 per cent and services by 3.3 per cent.

The June data also highlighted a shift in the cost structure of key items. Among the biggest contributors to inflation were rent, electricity, and refuse disposal. Items such as charcoal, yam, cooked rice, and smoked herrings, which previously saw high inflation, recorded marked price declines.

With headline inflation dropping nearly five percentage points in just one month, the government is likely to find renewed confidence in its target of achieving single-digit inflation by early 2026. However, the GSS has urged a cautious approach, advising households to continue bulk purchasing of foodstuffs, explore energy-saving strategies, and support local production where possible.

For businesses, the GSS recommended increasing local sourcing to reduce exposure to global supply shocks and adopting strategic pricing in light of more price-sensitive consumer behaviour. The government has also been advised to maintain the current policy path—particularly fiscal consolidation and targeted social programmes—to ensure inflationary gains are not eroded.

“The downward inflationary trend over the last six months provides some consistency and assurance of a real sustained shift in prices,” Dr Iddrisu concluded.

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