Accra: Ghana's year-on-year inflation rate continued its downward trend in July 2025, registering a decline to 12.1 per cent for the seventh month in a row, as reported by the Ghana Statistical Service (GSS) on Wednesday. The Government Statistician, Dr. Alhassan Iddrisu, highlighted this as the lowest inflation rate since October 2021, while cautioning about potential short-term monthly pressures.
According to Ghana News Agency, the announcement was made during the release of the July Consumer Price Index (CPI) and inflation data in Accra. The CPI for July 2025 was recorded at 259.1, reflecting a year-on-year increase from 231.0 in the same period of 2024. Dr. Alhassan emphasized that prices are, on average, 12.1 per cent higher than they were in July 2024, marking a significant achievement in inflation control.
The persistent decline in year-on-year inflation is attributed to Ghana's ongoing fiscal consolidation efforts, including non-interest spending, effective exchange rate management, and monetary policy actions aimed at ensuring price stability. On a month-on-month basis, the general price level rose by 0.7 per cent between June and July 2025.
The GSS data indicated that food inflation, though decreasing, remained the main driver of the overall inflation rate at 15.1 per cent in July, with non-food inflation reaching 9.5 per cent. Dr. Alhassan identified food and non-alcoholic beverages, housing, water, electricity and gas, clothing and footwear, alcoholic beverages, tobacco and narcotics, and recreation, sport and culture as the top five contributors to July's inflation.
A noticeable disparity exists between local and imported goods, with local goods inflation at 12.9 per cent, accounting for 73 per cent of total inflation, while imported food items recorded a lower inflation rate of 10 per cent. Regional variations were significant, with Central Region recording the lowest inflation rate at 7.7 per cent, and Upper West Region experiencing the highest at 24.8 per cent.
Dr. Alhassan noted that price reductions in essential commodities offered relief to households across income levels, but he called for targeted, region-specific responses to address economic disparities. He urged businesses to shift towards locally sourced materials, simplify product lines, and encouraged households to adopt energy-efficient habits and make bulk purchases of staples.
He stressed the importance of government research and price monitoring in regions with high inflation, particularly the Upper West, which has been severely impacted this year. Dr. Alhassan recommended policy interventions and urged the government to tailor social protection and economic policies, such as the Livelihood Empowerment Against Poverty (LEAP), National Health Insurance Scheme (NHIS), and School Feeding programme, to address regional disparities.
