Ghana’s inflation rate hit to 18.4% in May, marking a decline to its lowest point since February 2022

The comparative annual data of Ghana’s inflation rate dropped sharply to 18.4 per cent in May 2025, showing a further decline from the 21.2 per cent recorded in April and increasing the country’s disinflation trend for a fifth month in a row.

The Ghana Statistical Service identified as a key factor in the decline to lower transport fares, a direct result of falling fuel prices, and alleviating pressure in the non-food inflation basket. It is the lowest inflation rate recorded since February 2022, indicating increasing stability in consumer prices after a long period of economic instability.

Speaking to the press in Accra, the Government Statistician Dr Alhassan Iddrisu said: “The reduction in fuel prices at the pumps, and the subsequent reduction in transport fares contributed the highest to the May inflation.” He drew to attention that non-food inflation had also declined significantly, pointing to more extensive relief in several sectors of the economy.

Dr Alhassan Iddrisu said “The inflation trend we are witnessing shows sustained deceleration. Food remains a key inflation driver, but the sharper drop in non-food inflation suggests a broad-based easing of inflation across the economy.” The current decline in inflation is being connected to a set of more stringent monetary and fiscal measures, relative exchange rate stability, and more stable international prices.

Dr Alhassan Iddrisu added that “This trend underscores the effectiveness of recent monetary and fiscal measures, the recent appreciation of the Cedi against the major international currencies, favourable external price dynamics and positive market sentiment.” The Producer Price Inflation (PPI), another essential indicator of pricing pressure, also showed a significant deceleration—slowing to 18.5 per cent in April from 24.4 per cent in March.

The figures point to ongoing easing of inflationary pressure at the factory gate, offering some relief to manufacturers and consumers alike.

Regardless the improvement,  price increment remains more than two times the Bank of Ghana’s short-to-medium term goal of 8 per cent, with a range of acceptable variation of plus or minus 2 percentage points. The central bank has adopted a prudent approach in its money supply management to provide a foundation for  price expectations.

The country is gradually recovering from economic challenges resulting from currency stability, global commodity price shocks, and interruptions to some significant export sectors, including cocoa and gold.

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