As inflation continues its steady decline, the Ghana Statistical Services (GSS) has advised government to sustain the trajectory and deepen macroeconomic reforms by investing in food logistics, utilities and regional support systems.
Headline inflation dropped to 18.4 percent in May 2025 from 21.2 percent in April—the fifth consecutive monthly decline and the lowest rate since February 2022. Also, monthly inflation stood at 0.7 percent, a slight decrease from April’s 0.8 percent, signalling short-term price stability.
However, to tackle persistent price pressures— especially in food and utility sectors—the GSS recommended targeted government interventions in high-inflation regions like the Upper West, where inflation remains above 38 percent.
Contributing factors in Upper West included food (43.9 percent), education services (57.6 percent) and housing and utilities (124.3 percent).
“Housing, water, electricity, gas and other fuels (124.3 percent); education services (57.6 percent); and food and non-alcoholic beverages (43.9 percent) recorded rates higher than the overall inflation for Upper West Region (38.1percent). Inflation for fish and other seafood (92.1 percent) and oils and fats (80.2 percent) were higher than overall food inflation for Upper West Region (43.9 percent),” May 2025 Consumer Price Index (CPI) indicates.
Greater Accra, Ashanti and Eastern Regions contributed the most to national inflation due to their higher weights in the CPI basket.
Food inflation, though declining from 25 percent in April to 22.8 percent in May, remains the biggest contributor to overall inflation. The GSS, therefore, advised government to invest in post-harvest storage, transport infrastructure and irrigation systems to improve food supply and reduce post-harvest losses to stabilise prices.
Equally important is protecting vulnerable populations as the GSS urged the expansion of targeted social protection programmes, particularly in high-inflation sectors such as food and education.
“Continue to protect vulnerable groups through expansion of targeted social protection in high-inflation regions and sectors, especially where food and education costs are rising,” Government Statistician, Dr. Alhassan Iddrisu urged.
He also emphasised the importance of promoting local production as a long-term inflation control strategy.
“Promote local production by supporting small and medium size enterprises and agribusinesses to strengthen domestic supply chains,” he said.
Dr. Iddrisu further called for close collaboration between the Ministry of Finance and the Bank of Ghana to ensure inflation drivers are continuously monitored.
“Align monetary and fiscal policies through collaboration with the Bank of Ghana to monitor inflation drivers and evaluate the need for cautious monetary tightening if pressures persist,” he said.
Households
The GSS also outlined practical strategies for households to manage their budgets amid gradually easing inflation.
“With food inflation contributing almost 2/3 of the total inflation, households should adopt bulk purchasing, shared food buying and consider local, in-season produce to reduce food costs.
“Households could also limit discretionary spending on items like restaurants (18.5 percent inflation) and recreation.
Given 20.1 percent inflation in health, households should prioritise preventive care and take advantage of National Health Insurance Scheme (NHIS) benefits to avoid high out-of-pocket expenses,” Dr. Iddrisu urged.
Businesses
For businesses, the GSS urged a shift toward local sourcing to mitigate rising costs. “Since local inflation is easing faster than imported inflation, businesses can benefit from reducing reliance on imported inputs,” Dr. Iddrisu explained.
He also encouraged firms to avoid unnecessary price hikes.
“With disinflation underway, avoid sharp price hikes and rather build customer trust through transparent pricing.
“Tailor distribution and pricing strategies to reflect regional inflation differences — particularly in the north,” he said.
