The fight against high inflation reached a notable milestone in June 2025, as the year-on-year inflation rate dropped for the sixth consecutive month to 13.7%, down from 18.4% in May. This is the lowest rate recorded since December 2021, signaling what officials say is a meaningful and sustained cooling of price pressures.
The latest data released by the Ghana Statistical Service (GSS) on Wednesday shows a continued downward trend in both headline and core inflation indicators, boosting hopes that Ghana’s economic recovery efforts are taking hold.
Goods and services now cost less than in may
According to the GSS, the Consumer Price Index (CPI) for June stood at 257.3, compared to 260.5 in May 2025 and 226.4 in June 2024.
This means that the average prices of goods and services rose by 13.7% over the past year, but notably declined by 1.2% between May and June 2025—a rare month-on-month deflation.
“This means that Ghanaians paid less for goods and services in June than they did in May,” said Dr. Alhassan Iddrisu, the Acting Government Statistician. “The general price level fell, which is an encouraging sign.”
He added, “The downward inflationary trend over the last six months provides some consistency and assurance of a real sustained shift in prices.”
Core inflation falls sharply to 8.3%
The data also shows a significant drop in core inflation, which excludes the more volatile categories such as energy, utilities, and transportation.
In June, core inflation declined to 8.3%, down sharply from 19.5% in May.
This suggests that underlying inflationary pressures—those that typically remain even when volatile elements are removed—are easing faster than expected.
“This disinflation means some breathing room for households, a more predictable environment for businesses, and a powerful signal that recent fiscal and monetary efforts may be taking hold,” Dr. Iddrisu said.
He emphasized the importance of staying the course on current policies to consolidate the gains.
Food and non-food prices declines
Food inflation, a major contributor to Ghana’s overall inflation figures in recent years, also saw a notable decline.
Year-on-year food inflation fell by 6.5 percentage points to 16.3% in June, while non-food inflation dropped by 3 percentage points to 11.4%.
Month-on-month, the general price level for food items dropped by 0.5%, while non-food items declined by 1.8%.
Goods and services also see major declines
The inflation rate for goods fell by 4.9 percentage points to 15.2%, while the general price level for goods declined by 1.2% between May and June.
Similarly, services inflation declined by 5.0 percentage points to 9.3%, with the average price level for services dropping 3.3% over the same period.
Local inflation still higher than imported goods
While both locally produced and imported items saw declining inflation, local goods and services remain slightly more inflationary.
The inflation rate for locally produced goods stood at 14%, higher than the 12.5% recorded for imported items.
However, prices for local goods fell by 1.1% in June, while imported items saw a steeper 1.8% decline in prices.
Regional disparities persist
Despite the national trend, regional inflation disparities remain stark.
The Upper West Region recorded the highest inflation in June at 32.3%, though this was down from 38.1%in May.
That figure is still more than double the national average and highlights the uneven impact of inflation across the country.
At the other end of the spectrum, the Bono East Region reported the lowest inflation rate at just 8.4%, suggesting that cost-of-living pressures are easing faster in some parts of the country than others.
Analysts call for sustained policy discipline
Economists and analysts say the sustained decline in inflation is encouraging, but warn that it must be supported by disciplined fiscal management, targeted social protection, and further efforts to stabilize the cedi.
For now, the June inflation report brings a rare piece of good news for Ghanaian consumers—prices are not just rising more slowly; in some cases, they are actually falling.
