Ghana’s inflation falls for 4th straight month, now at 21.2% in April 2025

Ghana’s consumer inflation has continued its downward trend for the fourth straight month, falling to 21.2% in April 2025 from 22.4% in March, according to the latest data from the Ghana Statistical Service (GSS).

• Ghana's inflation dropped to 21.2% in April 2025 from 22.4% in March, reflecting a four-month downward trend.
• The Bank of Ghana may consider revising monetary policy following these inflation trends.
• Food inflation remains high at 25%, leading to ongoing cost-of-living concerns despite overall easing.

The drop in inflation was attributed to easing price pressures in both food and non-food categories. However, inflation in the food sector remained notably high at 25%, underscoring persistent cost-of-living concerns for households and economic planners.

Food inflation still elevated despite general slowdown

At a press conference held on 7 May 2025 in Accra, Government Statistician Dr Alhassan Iddrisu remarked: “Year-on-year inflation slowed to 21.2% in April 2025, largely due to a moderation in both food and non-food prices, though food inflation remains elevated.”

While the annual figures offer a glimmer of hope, monthly inflation rose slightly to 0.8% in April, compared to 0.2% in March—suggesting the re-emergence of upward pressures, particularly in food prices. Dr Iddrisu noted: “On a month-on-month basis, food inflation increased, whilst non-food inflation was maintained.”

A deeper analysis revealed a significant divergence between domestic and imported inflation. Locally produced goods saw a year-on-year inflation rate of 22.7%, notably higher than the 17.7% recorded for imported items. Additionally, monthly inflation for domestic goods was double that of imports, indicating ongoing supply constraints within the local economy.

Policy implications and central bank strategy

Economists argue that while global factors have helped cool some prices, domestic inefficiencies—particularly in food production and distribution—continue to weigh heavily on inflation.

The sustained decline in headline inflation could give the Bank of Ghana more room to adjust its monetary policy. The central bank raised interest rates unexpectedly in March to tame inflation expectations. Governor Dr Johnson Asiama is expected to reassess policy direction at the next Monetary Policy Committee meeting later this month.

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