Saturday, July 26, 2025
NewsCenta
  • Home
  • News
    • Politics
    • Local
    • Education
    • Agriculture
    • World
  • Entertainment
    • Celebrities
    • Music
  • Lifestyle
  • Business
  • Sports
  • Tech
  • Opinion
No Result
View All Result
NewsCenta
  • Home
  • News
    • Politics
    • Local
    • Education
    • Agriculture
    • World
  • Entertainment
    • Celebrities
    • Music
  • Lifestyle
  • Business
  • Sports
  • Tech
  • Opinion
No Result
View All Result
NewsCenta
No Result
View All Result

May inflation drops to 18.4%

Sharp decline marks continued improvement in cost-of-living pressures

admin by admin
June 4, 2025
in Business
0
Inflation drops to 18.4% in May

Inflation drops to 18.4% in May

Share on FacebookShare on Twitter

The May 2025 inflation rate drops to 18.4 percent, down from 21.2 percent in April, according to data released by the Ghana Statistical Service (GSS) on Wednesday.

This marks the lowest inflation level since February 2022 and the fifth consecutive monthly drop in the year-on-year rate, pointing to renewed stability in prices across the country.

You might also like

Rockway Oilfields ISO

Rockway Oilfields secures triple ISO certification

July 25, 2025
Ecobank Ghana Chipa

Ecobank Ghana to plant 1,700 trees to restore Chipa Forest

July 25, 2025

Monthly inflation drops to 0.7%; core inflation eases to 18.5%

Government Statistician Dr. Alhassan Iddrisu announced that monthly inflation in May stood at 0.7 percent, slightly lower than the 0.8 percent recorded in April.

Core inflation, which excludes volatile items such as food and energy, also moderated to 18.5%—an encouraging sign of easing inflationary pressures across essential categories.

Food and non-food prices for May inflation drops

Non-food inflation drops sharply to 14.4%; goods still cost than services

Food inflation declined to 22.8%, while non-food inflation dropped more significantly to 14.4%.

Goods inflation remained higher at 20%, compared to 14.3% for services.

Dr. Iddrisu noted that goods contributed 79% to overall inflation, with non-durable goods alone accounting for 10.1 percentage points of the 18.4% headline rate.

Domestic production helping ease price burden

Inflation for locally produced goods dropped by 3.5 percentage points, outpacing a 1.3-point fall in imported inflation.

This highlights the growing role of domestic supply in stabilising prices and reducing the economy’s exposure to global volatility. Key contributors to May’s inflation included staple food items such as yams, smoked herring, fish, vegetable oil, and ginger.

Regional disparities persist despite national gains

Upper West tops inflation chart at 38.1%; Ahafo records lowest at 14.5%

The Upper West Region recorded the highest regional inflation at 38.1 percent, driven largely by price increases in food, education, and utilities.

In contrast, the Ahafo Region posted the lowest inflation rate at 14.5%.

Fifteen out of the sixteen regions experienced year-on-year declines, underlining a broad-based disinflation trend across the country.

Stronger Cedi, tight monetary policy behind gains

Fiscal consolidation, positive sentiment reinforce inflation drop

According to Dr. Iddrisu, the sustained disinflation trend has been supported by a strengthened cedi, tighter monetary policy by the Bank of Ghana, and fiscal consolidation efforts by the government. Improved market confidence has also contributed to the positive economic trajectory.

He expressed cautious optimism that these gains could continue in the coming months.

Tips for households to manage spending

Bulk buying, seasonal foods, and NHIS use are recommended

Given that food inflation contributes nearly two-thirds of the total inflation basket, Dr. Iddrisu advised households to adopt strategies such as bulk purchasing, shared food buying, and focusing on seasonal, local produce.

He also recommended limiting discretionary spending on restaurants and recreation and emphasised the importance of preventive healthcare and using NHIS benefits to avoid costly out-of-pocket medical expenses.

Source locally and stay transparent

Disinflation offers opportunity to reset pricing strategies

Dr. Iddrisu encouraged businesses to rely more on locally sourced inputs to reduce exposure to global price fluctuations.

He warned against sharp price hikes during the disinflation period and urged firms to maintain transparent pricing to retain customer trust.

Businesses were also advised to tailor strategies to regional inflation trends, especially in the more volatile northern regions.

Policy recommendations for govt

Support local production, stabilise food prices, and protect the vulnerable

The Government Statistician called on the government to maintain macroeconomic policies that ensure cedi stability and sustain disinflation.

He recommended targeted investment in food logistics, irrigation, and post-harvest infrastructure.

In high-inflation regions, particularly the Upper West, he urged expanded social protection programmes and improved access to education and utilities.

Strengthening SMEs and agribusinesses and aligning fiscal and monetary policies were also highlighted as priorities.

Cautious optimism for continued relief

But vigilance is required to protect gains

While the recent inflation figures are encouraging, Dr. Iddrisu stressed the importance of remaining vigilant.

Sustained macroeconomic coordination, robust local production, and continued support for the most affected regions will be crucial in preventing a reversal of these hard-won gains.

For now, however, both households and businesses can look forward to a slightly more stable economic environment.

Post Views: 182
Tags: Ghana Statistical ServiceInflation
admin

admin

Related Stories

Rockway Oilfields ISO

Rockway Oilfields secures triple ISO certification

by NewsCenta
July 25, 2025
0

Rockway Oilfields Services Ghana Limited, an indigenous Ghanaian company, is proud to announce that it has been officially awarded ISO...

Ecobank Ghana Chipa

Ecobank Ghana to plant 1,700 trees to restore Chipa Forest

by Selorm Gborbidzi
July 25, 2025
0

Ecobank Ghana has commenced a significant reforestation project in the Chipa Forest Reserve, in the Shai-Osudoku District of the Greater...

GH¢114.5 billion half

Breakdown of GH¢114.5 billion govt spent in first half 2025

by NewsCenta
July 25, 2025
0

Ghana’s Finance Minister, Dr Cassiel Ato Forson, has disclosed that a total of GH¢114.5 billion was disbursed from the Consolidated...

bondholders paid

GH¢10.9 billion paid to bondholders in first half of 2025

by NewsCenta
July 25, 2025
0

Ghana’s Finance Minister, Dr Cassiel Ato Forson, has disclosed that the government paid over GH¢10.9 billion to both domestic and...

Recommended

Mfantsiman Old Girls’

Mfantsiman Old Girls’ Health Walk set for August 2

July 25, 2025
Samira Bawumia award

Samira Bawumia institutes award scheme for SHS students

July 25, 2025
GTA Police

GTA Police bust street racing ring, 130+ arrested

July 25, 2025

Popular Story

  • Causes death men

    10 of top 11 causes of death killing more men in Ghana

    695 shares
    Share 278 Tweet 174
  • Bissue floors High Court and OSP at Supreme Court

    688 shares
    Share 275 Tweet 172
  • Monday, May 26, 2025 Newspaper Headlines

    668 shares
    Share 267 Tweet 167
  • Tuesday, June 10, 2025 Newspaper Headlines

    658 shares
    Share 263 Tweet 165
  • Mahama govt to complete National Cathedral

    651 shares
    Share 260 Tweet 163
NewsCenta

Newscenta is a Ghana-based news organisation publishing in print (The Newscenta Newspaper) and on a digital media platform (newscenta.com) dedicated to delivering timely and impactful news across various sectors, including politics, business, economy, technology, and culture.

  • About Us
  • Contact Us
  • Health
  • Education
  • Mining
  • Energy
  • Telecoms
  • Agriculture
  • Trade
  • Opinion
  • Videos

© 2025 All Rights Reserved NewsCenta.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • News
    • Politics
    • Local
    • World
  • Entertainment
    • Celebrities
    • Music
  • Lifestyle
  • Newspaper Headlines
  • Business
  • Agriculture
  • Education
  • Sports
  • Tech
  • Opinion

© 2025 All Rights Reserved NewsCenta.

Connect with us