Ghana’s headline inflation has slowed for the seventh consecutive month, reaching its lowest level since October 2021.
According to fresh data released by the Ghana Statistical Service (GSS) on Wednesday, July 2025 inflation dropped to 12.1% year on year from 13.7% in June. This is the lowest level recorded since October 2021, when global supply shocks and a collapsing cedi began feeding a sustained rise in prices across the country.
Government statistician, Alhassan Iddrisu, said during a press conference that despite the continued disinflation trend, volatility in month-on-month rates should be watched closely.
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“Inflation is easing, but the monthly price increases we’ve seen… suggest that short-term pressures still exist and we need to do some more work,” Iddrisu said.
Food inflation decreased by 1.2 percentage points, settling at 15.1%, while non-food inflation fell by 1.9 percentage points to 9.5%.
Food inflation, often the hardest-hitting component for households, also eased slightly to 1.2% points in July, down from 16.3% the previous month. Non-food inflation dipped to 9.5% from 11.4% in the previous month.
Ghana’s central bank slashed its key interest rate by 300 basis points to 25% last week, the largest cut in its history, showing its confidence in a progressive slowdown in prices.
With the inflation trajectory steadily aligning with the Bank of Ghana’s current monetary policy strategy and inflation steadily retreating, there’s growing speculation that the central bank may take a less aggressive stance on interest rates in upcoming meetings.