Ghana’s annual inflation rate fell slightly in February 2025, dropping to 23.1 per cent from 23.5 per cent in January, marking the second consecutive month of decline.
The latest figures, released by the Ghana Statistical Service (GSS), indicate that the downward trend was primarily driven by a 1.8 percentage point reduction in food inflation.
Speaking at a press briefing on 5th March 2025, Government Statistician, Prof. Samuel Kobina Annim, highlighted that the decrease in food inflation had been consistent over the past four months.
“In the last four months, you’ve seen a consistent decline in food inflation on a month-on-month basis, dropping by 2.0 percentage points between November 2024 and February 2025,” he stated.
Despite the decline, Prof. Annim noted that the annual inflation rate for February was still the third-highest recorded in the last ten months, underscoring the persistent economic challenges facing the country.
Food and non-food inflation trends
Food inflation for February 2025 stood at 28.1 per cent, down slightly from 28.3 per cent in January, reflecting a 1.8 per cent month-on-month decrease. However, several food items still recorded price increases, including vegetables, tubers, cooking bananas, and pulses (28.1 per cent), ready-made food and other food products (45.5 per cent), cereals and cereal products (38.6 per cent), and fish and seafood (26.5 per cent).
Non-food inflation also saw a marginal decline, dropping to 18.8 per cent in February from 19.2 per cent in January, representing a 0.9% reduction.
Regional disparities in inflation
The Upper West Region recorded the highest regional inflation rate at 35.5 per cent, with food inflation alone surging to 49.8 per cent, making it the region most affected by price increases. The Savannah Region followed closely with a food inflation rate of 48.6 per cent. In contrast, the Volta Region registered the lowest inflation rate at 18.1 per cent, reflecting significant regional disparities in price movements.
Macroeconomic concerns and outlook
Although inflation has continued to decline, Ghana’s economic recovery remains fragile. The Consumer Price Index (CPI) for February 2025 stood at 255.9, up from 207.8 in February 2024, indicating a 23.1 per cent increase in general price levels year-on-year. Month-on-month inflation between January and February 2025 was recorded at 1.3 per cent, compared to 1.7 per cent in the previous month.
Ghana continues to battle economic turbulence, with the effects of a struggling cocoa and gold sector impacting overall fiscal stability. Inflation remains well above the Bank of Ghana’s target range of 6-10 per cent, with policymakers warning that it will take longer for inflation to stabilise within the target band.