Inflation for June 2025 drops from 18.4% to 13.7%

Ghana’s year-on-year inflation for June 2025 has seen a remarkable decline, dropping to 13.7% from 18.4% in May. This marks the sixth consecutive monthly decline in inflation this year and represents the lowest inflation rate since December 2021.

The data was released by the Ghana Statistical Service (GSS) in Accra on July 2, 2025, highlighting a general easing in the pace of price increases across the country.

Falling food prices drive the decline

According to the GSS, the slowdown in inflation was largely influenced by declining food prices. Food inflation fell sharply by 6.5 percentage points, from 22.8% in May to 16.3% in June. In addition, non-food inflation also declined, from 14.4% to 11.4%, a drop of 3 percentage points.

This easing of food and non-food price pressures signals a broader trend toward stability in the cost of living.

Deflation recorded for the first time in months

In a notable development, Ghana recorded a month-on-month deflation of 1.2% between May and June 2025. This means that the average prices of goods and services actually decreased—a rare occurrence in recent inflationary cycles.

The GSS indicated that this could be a sign that Ghanaians paid less in June for everyday items compared to the previous month.

Statistician general: Trend suggests sustained price relief

Speaking at the press briefing, Government Statistician Dr. Alhassan Iddrisu noted that the consistent fall in inflation over the past six months is encouraging.

“The downward inflationary trend over the last 6 months provides some consistency and assurance of real sustained shift in prices,” Dr. Iddrisu stated.

Regional differences: Upper West tops, Bono lowest

Despite the national improvement, regional disparities remain significant. The Upper West Region recorded the highest regional inflation at 32.3%, driven primarily by rising food and utility prices. On the other end, the Bono Region posted the lowest inflation rate of 8.4%.

Dr. Iddrisu emphasized the need for more granular data to understand these regional variations and to develop targeted strategies for reducing inflation disparities across the country.

Outlook: A turning point for the Ghanaian economy?

With inflation at its lowest in over three years and deflation setting in for the first time in recent months, the economic outlook appears cautiously optimistic. The continued decline in both food and non-food inflation offers a glimmer of hope for households and businesses grappling with the cost-of-living crisis.

As Ghana maintains this downward inflationary trajectory, focus now shifts to ensuring that the trend is sustainable and inclusive, especially in high-inflation regions.