KEY POINTS
- Ghana’s inflation rate declined to 23.1 percent in February, down from 23.5 percent in January.
- The Upper West Region recorded the highest inflation at 35.5 percent, while Volta had the lowest at 18.1 percent.
- Ghana’s economy remains fragile, with inflation still well above the Bank of Ghana’s 6-10 percent target range.
Ghana’s inflation rate fell marginally in February 2025, reaching 23.1 percent, down from 23.5 percent in January, according to the Ghana Statistical Service (GSS).
The decline was largely driven by a 1.8 percentage point drop in food inflation, which has been steadily decreasing over the past four months.
Speaking at a press briefing on March 5, 2025, Government Statistician Prof. Samuel Kobina Annim noted that despite the decline, inflation remains a pressing economic challenge.
“Over the past four months, we have observed a consistent drop in food inflation, with a 2.0 percentage point reduction between November 2024 and February 2025,” he said.
However, while food inflation stood at 28.1 percent in February, down slightly from 28.3 percent in January, certain food products continued to see price increases.
These include vegetables, tubers, cereals, fish, and ready-made food, which saw inflation rates as high as 45.5 percent in some categories.
Regional disparities in inflation trends
Inflation shows substantial variations in different parts of Ghana because some locations experienced substantial price surges compared to others.
Food inflation rates reached 49.8 percent while the inflation rate at 35.5 percent emerged as highest in the Upper West Region.
The food cost inflation rate in Savannah Region matched the figure from Upper West Region at 48.6 percent.
The Volta Region experienced the most modest inflation rate of 18.1 percent which contrasts strongly with other parts of Ghana.
The experts attribute differences in food prices to localization of production, transportation expenses and restrictions on market entry.
Graphic Online, reports that non-food inflation rates experienced a slight reduction between January and February, as the figure dropped from 19.2 percent to 18.8 percent indicating a 0.9 percentage point decline.
The recent decline indicates improved conditions in the broader economy but prices remain above the Bank of Ghana’s established target range from 6 to 10 percent.
Economic outlook remains uncertain
Despite the decline in inflation, Ghana’s economic recovery remains fragile.
The Consumer Price Index (CPI) in February 2025 increased by 23.1 percent from its previous year’s value of 207.8 to reach 255.9.
Global economic factors affect Ghana’s economy through ongoing challenges in the cocoa and gold sectors that historically supported fiscal stability.
Policy makers state that lowering inflation to match central bank targets requires multiple years of improved economic strategies and better market stability.
Meanwhile, month-on-month inflation between January and February stood at 1.3 percent, slightly lower than 1.7 percent recorded in the previous month.
Although progress has been made, inflation still prompts the central bank to face uncertainty about its ongoing descent and potential future volatilities.
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