Inflation Rate Declines for the Second Time in 2025

The latest consumer price index data released by the Ghana Statistical Service (GSS) showed signs of easing pressures on the prices of consumer goods and services as the inflation rate recorded its second successive decrease in the year, slowing down from an eight-month high in December last year. The inflation print for February was reported at 23.1%, a marginal decrease from 23.5% in January. The month-on-month inflation reading sustained its downward trajectory for the third consecutive time, slowing down from a high of 2.6% in November last year to print at 1.3% in February, 2025.

Despite the recent dips in the inflation reading, the consumer price index continues to remain relatively high following the prolonged adverse weather conditions, which has subsequently delayed harvests. This phenomenon has thus culminated in soaring local food prices. The GSS data showed that some local food items such as Ginger, Okro, Dried pepper, Beans, and Yam recorded annual inflation numbers in excess of 70.0%. Inflation is expected to remain above 20.0% in the near term as the Cedi continues to experience some volatility whilst food prices remain high.

Food inflation sustained its dominance of the inflation basket for the sixth consecutive time, despite recording a decrease from 28.3% in January to 28.1% in February, as some items like Vegetables, tubers & plantains and Fruits & nuts recorded significantly higher rates. The month-on-month inflation reading for the food basket fell to a four-month low at 1.8% in February from 2.0% in January. This was supported by a decline in the monthly reading by a majority of the sub-group items, with Ready-made food coming in as the biggest price driver from 1.2% to -0.9%.

The non-food inflation basket maintained its steady decline for the fourth consecutive time, slowing down from a high of 21.5% in October 2024 to print at 18.8% in February 2025. The month-on-month inflation reading for the non-food basket plummeted to 0.9% in February from 1.4% in January as all the sub-group items recorded rates lower than the group’s average inflation figure.

Across the regions, the inflation rate ranged from 18.1% in the Volta region to 35.5 % in the Upper West region. Inflation on local and imported items recorded diverging results as inflation on local goods dropped to 25.1% in February from 25.7% in January while that on imported items rose to 18.5% from 18.4% over the same period.

The monetary policy committee sits for the second time this year later this month, where it will be expected that the newly constituted panel will continue to act cautiously following the steps of the previous panel. Market watchers expect no significant policy deviation as inflation continues to remain sticky downwards.