Ghana’s inflation rate eased to 5.4 percent in December 2025, marking the 12th consecutive month of decline and reaching the lowest level since the Consumer Price Index (CPI) was rebased in 2021, according to data released Wednesday by the Ghana Statistical Service (GSS).
The December reading compares with 6.3 percent in November and 23.8 percent a year earlier, representing an 18.4 percentage point decline over 12 months. Government Statistician Dr. Alhassan Iddrisu told reporters the sustained slowdown reflects broad based easing in price pressures and improving macroeconomic conditions.
On a month to month basis, consumer prices rose 0.9 percent between November and December, indicating that short term price movements persist but within a clearly downward longer term trend.
Food inflation, which accounts for about 43 percent of household spending, fell to 4.9 percent year on year from 27.8 percent in December 2024 and 6.6 percent in November. Despite the annual decline, food prices rose 1.1 percent month to month, which Iddrisu attributed mainly to seasonal factors.
Non food inflation also moderated, easing to 5.8 percent from 6.1 percent in November and 20.3 percent a year earlier. Both categories recorded modest month to month increases, underscoring lingering but contained pressures.
Price pressures eased for both domestically produced and imported items. Inflation for locally produced items stood at 5.9 percent in December, down from 6.8 percent in November, while imported inflation slowed to 4.3 percent from 5.0 percent the previous month.
Regional data showed wide disparities, with the Eastern Region recording the highest annual inflation at 11.2 percent while the Savannah Region posted minus 1.2 percent, indicating outright price declines. Differences in local supply conditions, transportation costs and market access continue to influence price movements across regions.
Services inflation moved in the opposite direction, rising to 4.5 percent in December from 3.8 percent in November, though it remained well below year earlier levels. Month to month, services prices rose 0.9 percent.
Presenting the data in Accra, Iddrisu said the figures point to increasing price stability, though inflation pressures remain concentrated in specific regions. He urged the government to maintain fiscal discipline and step up investment in storage, transport, irrigation and market access to address supply constraints and reduce regional disparities.
For businesses, he said easing inflation provides room to invest in efficiency, strengthen local supply chains and translate cost savings into more stable prices. Households can plan budgets with greater confidence while prioritizing essentials and building savings.
The disinflation trend comes alongside improving growth dynamics, with Ghana’s economy expanding 5.5 percent year on year in the third quarter of 2025, supported by a recovery in agriculture and services.
The International Monetary Fund (IMF) last month completed the fifth review of Ghana’s loan programme, unlocking an immediate disbursement of about $385 million and reinforcing confidence in the country’s reform trajectory.
Ghana also settled a $709 million Eurobond obligation, marking a key milestone in its economic recovery efforts. The Finance Ministry said this development underscores Ghana’s commitment to disciplined debt management.
The West African cocoa, gold and crude oil exporter began implementing reforms in May 2023 after inflation soared to 54.1 percent in December 2022, amid ballooning public debts, a collapsing local currency and a weakened macroeconomic environment.
The situation has improved as a result of reforms backed by a 3 billion dollar loan from the IMF and austerity measures introduced by the government. For the first time in decades, the cedi recorded an annual appreciation against all major currencies, including 40.7 percent against the US dollar.
While authorities have warned that risks remain, including exposure to global commodity price swings, economists say the sharp fall in inflation provides room for a more supportive policy environment as Ghana continues its economic recovery. The December outcome reinforces expectations that the Bank of Ghana may continue cutting interest rates in 2026.
