Ghana's inflation rate significantly declined in May 2025, dropping to 18.4% from 21.2% in April. This marks the fifth consecutive month of decreasing inflation and represents the lowest rate since February 2022.
The Ghana Statistical Service attributes this sharp decline to reductions in transportation fares and a decrease in non-food inflation. Government Statistician Dr. Alhassan Iddrisu highlighted that reducing fuel prices at the pumps, leading to lower transport fares, significantly contributed to the May inflation figures.
Regionally, the Upper West recorded the highest inflation at 38.1%, while the Ahafo region registered the lowest at 14.5%.
This downward trend in inflation aligns with broader economic indicators. Producer Price Inflation also saw a notable decrease, falling to 18.5% in April from 24.4% in March.
Despite these improvements, inflation remains above the Bank of Ghana's target range of 6–10%. Consequently, the central bank has maintained its key interest rate at 28.0% to address persistent price pressures.
Looking ahead, the Bank of Ghana has set an ambitious end-of-year inflation target of 12%, expressing confidence in achieving this goal through continued fiscal discipline and favorable economic conditions.
The consistent decline in inflation reflects the effectiveness of recent monetary and fiscal measures, the appreciation of the cedi, and positive market sentiment. As Ghana continues its recovery from previous economic challenges, these developments signal a promising trajectory towards economic stability.
