Ghana’s annual consumer inflation rate has continued its downward trend for the third straight month, falling to 22.4% in March 2025, down from 23.1% in February, according to data from the Ghana Statistical Service (GSS).
Decline driven by lower food prices
Government Statistician Samuel Kobina Annim attributed the decline to reduced pressure on food prices, stating: “The rate of 22.4% is the lowest recorded in the past four months.”
Food inflation saw a significant drop from 28.1% in February to 26.5% in March, while non-food inflation experienced a marginal decline, easing from 18.8% to 18.7%.
Locally produced goods also saw a reduction in inflation, decreasing from 25.1% to 24.0%, while inflation on imported goods slightly increased from 18.5% to 18.7%.
The easing of inflation comes shortly after the Bank of Ghana (BoG) made an unexpected decision to raise its benchmark interest rate by 100 basis points to 28%. The central bank justified this move, emphasising the need to maintain a tight monetary policy to further control inflation.
Analysts have noted that the recent decline in inflation aligns with the BoG’s policy measures aimed at stabilising price growth. The rate hike signals the central bank’s commitment to ensuring price stability amid economic uncertainties.
Sectoral and regional Inflation breakdown
A breakdown of inflation across sectors showed that Food and Non-Alcoholic Beverages recorded an inflation rate of 26.5 per cent, while Housing, Water, Electricity, Gas, and Other Fuels registered 25.1 per cent, both exceeding the national average.
Regionally, the Upper West Region recorded the highest inflation rate at 36.2%, while the Volta Region had the lowest at 18.9%.
The continued decline in inflation suggests a gradual stabilisation of Ghana’s economy, though economic experts caution that persistent monitoring and strategic policy interventions remain necessary.
