Domestic price pressures drove nearly three-quarters of Ghana’s total inflation in 2025, with locally produced items accounting for 73.6 percent of price increases, according to the Ghana Statistical Service’s maiden annual inflation report.
The Ghana Statistical Service (GSS) report found that local items, which constitute 68.5 percent of the national consumption basket, recorded an average annual inflation rate of 15.6 percent over the period. Imported items, by comparison, contributed 26.4 percent of total inflation at an average rate of 12.1 percent, leading the report to conclude that inflation in Ghana in 2025 was primarily home-grown, driven by domestic supply conditions and food systems rather than external shocks.
Food emerged as the single largest driver, accounting for 51.6 percent of total inflation. With a weight of 42.7 percent in the national consumption basket, food recorded an average annual inflation rate of 17.4 percent, against 12.2 percent for non-food items. Goods as a category accounted for 79.2 percent of total inflation, compared with 20.8 percent for services.
At the item level, rent was the largest single contributor to inflation, accounting for 8.6 percent of the total, followed by electricity at 6.1 percent. Key food staples including yam, smoked herrings, imported rice and river fish also ranked among the strongest contributors.
The report documented a sharp moderation in inflation across the year, from 23.5 percent in January to 5.4 percent in December 2025. It cautioned, however, that lower inflation does not mean lower prices but rather a slower pace of increase, meaning many households continued to face elevated price levels and reduced purchasing power throughout the period.
Regionally, the Upper West Region recorded the highest average inflation rate at 24.9 percent, while Bono East posted the lowest at 10.9 percent, reflecting disparities in market access, transport costs and supply chains across the country.
The report credited exchange-rate stability as one of the most important drivers of disinflation during the year, with cedi appreciation helping contain imported inflation and ease external price pressures. Fiscal consolidation and the Bank of Ghana’s (BoG) monetary policy response also supported the disinflation process by anchoring inflation expectations.
Speaking at the report’s launch, Government Statistician Dr. Alhassan Iddrisu described the publication as a shift from reporting monthly Consumer Price Index (CPI) movements to explaining the forces behind them.
“They show movement. They show direction. But they don’t tell the full story,” he said of monthly inflation figures.
First Deputy Governor of the BoG, Dr. Zakari Mumuni, described the annual report as an important analytical tool for understanding inflation dynamics beyond headline numbers, particularly the interaction between domestic and external price drivers and their implications for monetary policy.
The GSS recommended strengthening food systems and supply chains, sustaining monetary and fiscal coordination, addressing regional disparities through targeted interventions and modernising inflation measurement. It warned that inflation remains vulnerable to utility price adjustments, global energy price movements, exchange-rate volatility and food supply shocks in the period ahead.
