Ghana’s inflation rate declined to 12.1% in July 2025, marking the seventh consecutive monthly decrease and reaching the lowest level since October 2021.
The Ghana Statistical Service data shows a 1.6 percentage point monthly drop from June’s 13.7%, representing an 11.7 percentage point fall from December 2024’s peak of 23.8%. Month-on-month inflation stood at 0.7%, indicating continued but slowing price growth.
Food inflation eased to 15.1% from 16.3%, contributing over 50% of the headline rate, while non-food inflation declined more sharply to 9.5% from 11.4%. Both categories still recorded slight monthly increases of 0.6% and 0.7% respectively.
The sustained disinflation trend suggests macroeconomic stabilization efforts are producing desired results, potentially influencing future Bank of Ghana monetary policy decisions. Previous tightening measures and currency stabilization appear to be taking effect.
Non-food inflation’s sharper decline reflects easing pressures in housing, transportation, and services sectors, while elevated food inflation remains a key concern for household budgets across Ghana’s economy.
Economic analysts note that inflation moving closer to the medium-term target range of 8±2% provides monetary policymakers with increased flexibility. However, ongoing month-on-month increases suggest caution regarding premature policy loosening.
The central bank faces decisions balancing continued disinflation progress against persistent global commodity volatility and exchange rate sensitivities affecting import costs. Future monetary adjustments will likely depend on month-on-month trend persistence.
Fiscal consolidation maintenance ahead of Ghana’s 2026 election cycle represents another critical factor in sustaining current inflation trajectory. Political stability and policy consistency remain essential for continued economic progress.
Investment platform Daba Africa’s analysis highlights Ghana’s improving macroeconomic fundamentals as positive indicators for regional investment opportunities and economic growth prospects.
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