Inflation Eases to 23.5% in January, But Food Prices Remain High

Ghana‘s inflation rate dropped marginally to 23.5% in January 2025, down from 23.8% in December 2024, according to the latest report from the Ghana Statistical Service (GSS). While the overall rate saw a slight decline, rising food costs continue to exert pressure on households and businesses.

Food inflation climbed to 28.3% in January, up from 27.8% in December, reflecting persistent cost increases in essential goods. In contrast, non-food inflation fell to 19.2%, contributing to the overall easing of price pressures.

Inflation for locally produced items also trended downward, dropping from 26.4% in December to 25.7% in January. However, imported goods inflation rose slightly to 18.4%, compared to 17.9% in the previous month, indicating external price pressures.

Key inflationary drivers included alcoholic beverages, tobacco, and narcotics, which recorded an inflation rate of 27.2%, while food and non-alcoholic beverages remained high at 28.3%. Meanwhile, housing, water, electricity, gas, and other fuels stood at 24.6%, surpassing the national average.

At the regional level, the Western Region recorded the highest inflation rate at 49.9%, while the Volta Region registered the lowest at 18.0%.

The latest data underscores continued inflationary pressures in key sectors, particularly food and imported goods, despite the slight relief in the overall rate. Economic analysts suggest that monetary policy interventions and supply chain improvements will be critical in stabilizing prices in the coming months.

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