Ghana Inflation Falls to 21.2% in April 2025 Despite Soaring Food Prices

Ghana’s Inflation Drops to 21.2% in April 2025: A Positive Trend Amid Persistent Food Price Pressures

According to data from the Ghana Statistical Service (GSS), the country’s inflation rate continued to decline to 21.2% in April 2025 from 22.4% in March, marking the fourth consecutive month of declining inflation. However, food inflation, which stands at 25%, continues to be a significant concern, creating difficulties for households and policymakers.

Government Statistician Dr. Alhassan Iddrisu said at a press conference on May 7, 2025, that the slowdown in inflation was due to lower prices for both food and non-food items. Food inflation, however, is still a major problem and a major factor in the high rate overall. According to Dr. Iddrisu, monthly inflation increased from 0.2% in March to 0.8% in April, even though the year-over-year inflation rate decreased. This increase raises the possibility that inflationary pressures, especially those related to food costs, will increase soon.

Inflation for imported and domestic commodities differed significantly, according to the GSS data. The inflation rate for domestic goods was 22.7% year over year, which was significantly greater than the import rate of 17.7%. This implies that one of the main causes of Ghana’s inflation is internal supply restrictions, specifically in the production and distribution of food.

Economists point out that Ghana’s inflationary issue is complicated and that local inefficiencies are undermining efforts to stabilize prices externally. Inflationary patterns have resulted from this, particularly in the food markets. The Bank of Ghana and the government are anticipated to keep a careful eye on the issue, and some analysts believe that economic reforms and policy changes could help control inflation.

Looking forward, Finance Minister Dr. Cassiel Ato Forson remains optimistic that the government’s fiscal measures will help bring inflation down to 11.9% by December 2025, in line with the country’s medium-term economic recovery goals. The GSS has also recommended targeted interventions for the food market, especially for essential items like ginger, beans, and vegetable oil. Additionally, there are calls for strengthening social protection programs, such as the LEAP programme, to protect vulnerable groups from inflation’s impact.

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