Ghana’s inflation rate drops to 21.2% in April 2025- Economic trends

Ghana’s inflation has continued on a declining trend for the fourth successive month, decreasing to 21.2 per cent in April 2025 from 22.4 per cent in March, as per the new figures published by the Ghana Statistical Service (GSS).

The decrease shows calming pressures across both food and non-food categories, yet food inflation continues to be high at 25 per cent, creating a continuing concern for households and policymakers as well.

During a press briefing today (May 7, 2025) in Accra, Government Statistician Dr Alhassan Iddrisu explained, “Year-on-year inflation slowed to 21.2 per cent in April 2025, and this is largely driven by a moderation in both food and non-food prices, though food inflation remains elevated.”

Regardless of the yearly slowdown, monthly inflation increased to 0.8 per cent in April, from 0.2 per cent the previous month. This was a first sign of inflationary pressures, especially within the food sector . Dr Iddrisu added that “On a month-on-month basis, food inflation increased, whilst non-food inflation was maintained.”

Inflation figures revealed a marked difference between locally produced and imported items. Domestic goods showed a year-over-year inflation of 22.7 per cent, markedly greater than the 17.7 per cent recorded for imported items. Month-over-month inflation for local goods was also double that of imports, pointing to internal supply challenges as a crucial inflation driver.

Economists say the figures show Ghana’s uncertain economic climate, where external price stabilisation is being undermined by persistent local inefficiencies, specifically in food production and distribution.

The persistent drop in inflation may offer some policy space for the Bank of Ghana, which exceeded market expectations in March with a rate increase designed to arrest inflation expectations. Governor Dr Johnson Asiama is expected to reassess the policy approach at the central bank’s next Monetary Policy Committee meeting in May.

Finance Minister Dr Cassiel Ato Forson has emphasised that the government’s fiscal restraint will help push inflation down to 11.9% by December 2025, in line with medium-term economic growth goals.

The GSS also introduced policy measures in its April Consumer Price Index release. These include targeted support for food systems, especially monitoring inflation-sensitive items such as ginger, beans, and vegetable oil, and accelerating the roll-out of the Agriculture for Transformation Programme. Dr Iddrisu encourages that “The government must sustain macroeconomic stability measures and strengthen social protection schemes to shield vulnerable groups from the impact of inflation.”

These include the LEAP programme, Capitation Grant, National Health Insurance Scheme, and school feeding interventions. Suggestions were also broadened to businesses and households. The GSS encouraged businesses to explore easing prices or rebuilding margins where the pressures on input costs have reduced, particularly in food and hospitality sectors. Households were advised to curb unnecessary expenses and stay vigilant about changes in transport and food prices.

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