Ghana’s Inflation Drops to 12.1% in July, Marking Continued Slowdown in Price Growth
GSS records 1.6 percentage point drop from June’s rate of 13.7%
Ghana’s year-on-year inflation rate fell to 12.1% in July 2025, down from 13.7% in June, according to the latest data released by the Ghana Statistical Service (GSS). This marks the third consecutive month of declining inflation, offering a glimmer of relief for consumers and policymakers battling high living costs over the past two years.
Food and Non-Food Prices Show Mixed Trends
The decline in headline inflation was largely driven by a slowdown in non-food inflation, which dropped significantly in July. Food inflation, while still elevated, remained relatively stable during the period.
GSS Government Statistician Prof. Samuel Kobina Annim noted that the steady decline reflects improved stability in supply chains, seasonal food harvests, and the impact of monetary policy tightening by the Bank of Ghana.
However, he cautioned that the inflation rate still remains above the central bank’s medium-term target of 8 ± 2 percent, calling for sustained fiscal discipline and close monitoring of global price shocks.
The latest figures are expected to influence the Monetary Policy Committee (MPC) of the Bank of Ghana as it prepares for its next meeting to review the policy rate.
Policy Implications and Outlook
With inflation showing signs of retreat, analysts say the government may now shift its focus towards stimulating economic growth, especially in key sectors like agriculture and manufacturing, which are vital for long-term price stability.
The continued decline in inflation also comes at a time when Ghana is implementing reforms under its IMF-supported economic recovery programme, which includes measures to reduce fiscal deficits and stabilize the cedi.
Economists have urged caution, however, citing risks such as fuel price fluctuations, utility tariff adjustments, and global food price trends, which could reverse recent gains if not properly managed.
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