Ghana’s consumer inflation continued its downward streak for the fourth consecutive month, dropping to 21.2% in April 2025 from 22.4% in March, according to the latest figures released by the Ghana Statistical Service (GSS).

The easing of inflationary pressures was attributed to a general slowdown in both food and non-food price increases, though food inflation remained stubbornly high at 25%, highlighting ongoing cost-of-living concerns for households and economic policymakers alike.

Speaking at a press conference on May 7, 2025, in Accra, Government Statistician Dr Alhassan Iddrisu stated, “Year-on-year inflation slowed to 21.2% in April 2025, largely due to a moderation in both food and non-food prices, though food inflation remains elevated.”

Despite the improvement in annual figures, the monthly inflation rate ticked up to 0.8% in April, compared to just 0.2% in March, signaling a fresh wave of upward pressures, particularly in the food sector.

Dr Iddrisu added, “On a month-on-month basis, food inflation increased, whilst non-food inflation was maintained.”

A closer look at the data revealed a sharp split between domestic and imported inflation.

Locally produced goods recorded a year-on-year inflation rate of 22.7%, considerably higher than the 17.7% seen for imported products.

Moreover, the monthly inflation rate for domestic goods was double that of imports, reflecting persistent supply bottlenecks and inefficiencies within the local economy.

Economists suggest that while global factors have helped cool some price categories, domestic challenges, especially in food production and distribution, continue to exert significant pressure on inflation levels.

The sustained decline in headline inflation may open the door for the Bank of Ghana to adjust its monetary stance in the near term.

The central bank surprised markets with an interest rate hike in March aimed at curbing inflation expectations, and Governor Dr Johnson Asiama is widely expected to revisit the policy direction at the upcoming Monetary Policy Committee meeting later this month.