Ghana’s inflation rate experienced a significant decline in March 2025, settling at 22.4%, according to the latest report from the Ghana Statistical Service (GSS). This marks a continued downward trend from February’s 23.1%, offering a glimmer of relief to households and businesses grappling with high costs.
Food Prices Lead Inflation Decline
The primary driver of this decline was a notable reduction in food inflation, which had been a major contributor to rising prices in previous months. Food inflation eased to 26.5% in March, down from 28.1% in February. This decline was particularly reflected in staple food items, suggesting improved food supply and price stability in local markets.
Conversely, non-food inflation saw only a marginal drop, edging down from 18.8% in February to 18.7% in March. While this indicates a slower pace of price increases for goods and services outside the food sector, it also underscores persistent inflationary pressures in other areas of the economy.
Local vs. Imported Goods Inflation
A more pronounced reduction was observed in locally produced goods, where inflation dropped from 25.1% in February to 24.0% in March. This decline suggests a stabilization in domestic production costs, which may be attributed to improved supply chains and government interventions in key sectors.
However, the inflation rate for imported goods saw a slight increase, rising from 18.5% in February to 18.7% in March. This uptick signals that external cost pressures, such as global supply chain disruptions and currency fluctuations, continue to impact pricing dynamics in Ghana.
Sectoral and Regional Inflation Trends
Among economic sectors, Food and Non-Alcoholic Beverages recorded an inflation rate of 26.5%, while Housing, Water, Electricity, Gas, and Other Fuels stood at 25.1%—both surpassing the national inflation rate of 22.4%. These categories remain major drivers of household expenditure, emphasizing the ongoing burden of living costs despite the overall inflation slowdown.
Regional disparities in inflation were also evident, with the Upper West Region recording the highest rate at 36.2%, whereas the Volta Region posted the lowest at 18.9%. These variations highlight the diverse economic conditions across the country, with some regions still facing steep price increases despite the national decline.
Outlook and Economic Implications
The continued decline in inflation suggests that price pressures, particularly in the food sector, may be easing. However, the slight rise in imported inflation underscores the persistent influence of global economic factors on Ghana’s market.
While the recent data offers a positive outlook, policymakers and economic stakeholders will need to monitor trends closely to ensure sustained price stability. Measures to support local production, stabilize the cedi, and address external cost pressures will be crucial in maintaining this downward trajectory in inflation.
Story by: Mercy Addai Turkson #ahotoronline.com
