By Francis Ntow
Accra, Aug. 6, GNA – The year-on-year inflation rate continued its downward trajectory in July 2025, declining to 12.1 per cent for the seventh consecutive month, the Ghana Statistical Service (GSS) said on Wednesday.
The Government Statistician, Dr. Alhassan Iddrisu, said the 12.1 per cent inflation rate was the lowest the country has recorded since October 2021.
He, however, warned of short-term monthly pressures.
He said this during the release of the July Consumer Price Index (CPI) and inflation data in Accra, announcing a CPI of 259.1 for July 2025, translating into a year-on-year inflation, up from the 231.0 for the same period in 2024.
“Year-on-year inflation for July is 12.1 per cent. That means that, on the average, prices are 12.1 per cent higher now than they were in July 2024. This is the seventh straight month of declining inflation. It’s also the lowest inflation rate since October 2021,” Dr. Alhassan said.
He attributed the persistent year-on-year inflation decline in inflation to the country’s ongoing fiscal consolidation, including non-interest spending, effective exchange rate management and monetary policy actions in ensuring price stability.
On month-on-month basis, the Government Statistician stated that the general price level increased by 0.7 per cent between June and July 2025.
The GSS data showed that food inflation, though declining, remained the primary driver of the country’s overall inflation rate, at 15.1 per cent in July, while non-food inflation reached a single digit of 9.5 per cent in July 2025.
The Government Statistician cited food and non-alcoholic beverages, housing water, electricity and gas, clothing and footwear, alcoholic beverages, tobacco and narcotics and recreation, sport and culture as the top five drivers of the July inflation.
The breakdown revealed a stark difference between local and imported goods – local goods inflation stood at 12.9 per cent accounting for 73 per cent of the total inflation for July 2025, while imported food items recorded a lower 10 per cent inflation rate.
Regional variations in inflation rates were particularly pronounced, highlighting the uneven impact of economic pressures across Ghana, with Central Region recording the lowest inflation rate at 7.7 per cent and Upper West Region experiencing the highest at 24.8 per cent.
Dr. Alhassan explained that the price reductions in essential commodities provided tangible relief to households across income levels but called for targeted and region-specific responses to reduce disparities.
He also encouraged businesses to shift to locally sourced materials while simplifying product lines, urged households to make bulk purchases of staples in addition to adopting energy efficiency habits.
The Government Statistician said it was important for the government to conduct research and price monitoring in higher inflation areas, particularly the Upper West, which has seen high inflation this year and provide policy interventions.
He also urged the government to tailor social protection and economic policy, such as the Livelihood Empowerment Against Poverty (LEAP), National Health Insurance Scheme (NHIS) and School Feeding programme, to address the regional disparities.
GNA
Edited by Christian Akorlie