Dr. Alhassan Iddrisu
Inflation for the month of May 2025 has dropped significantly to 18.4 percent year-on-year from the 21.2 percent recorded in April this year, the Ghana Statistical Service (GSS) has revealed.
According to the GSS data, this is a 4.7 percentage points drop over the 12-month period from the May 2024 inflation of 23.1%, signaling a notable easing of inflationary pressures attributed the sharp drop to reduction in transportation fares and decline in non-food inflation.
It is also the fifth consecutive reduction in inflation for 2025, signaling a decline in the rate at which prices are increasing.
This is also the lowest rate recorded since February 2022.
The Government Statistician, Dr. Alhassan Iddrisu, explained that the reduction in fuel prices at the pumps, and the subsequent reduction in transport fares contributed the highest to the May inflation decline.
“This trend underscores the effectiveness of recent monetary and fiscal measures, the recent appreciation of the cedi against the major international currencies, favorable external price dynamics, and positive market sentiments,” he said.
Dr. Iddrisu said the disinflation process is expected to continue in the coming months to fully reflect the impact favourable economic factors including the appreciation of the cedi.
He said Core inflation, which excludes volatile items such as energy, utilities, and volatile food items dropped to 18.5% in May 2025 from 19.5% in April 2025, signaling moderation in underlying inflationary pressures.
“This simultaneous decline in both headline and core inflation signals easing price pressures across both general and core consumption baskets,” he added.
At the regional level, he said the Upper West recorded the highest inflation of 38.1 percent whiles Ahafo region recorded the lowest inflation of 14.5 percent.
A Business Desk Report