Ghana’s annual inflation rate eased for the third straight month, reaching 22.4 per cent in March. It dropped from 23.1 per cent in February, marking the lowest rate in four months. The Ghana Statistical Service (GSS) attributed the decline to a sharp drop in food inflation and a slight decrease in non-food inflation.
Government Statistician Samuel Kobina Annim confirmed the trend. He stated that in March 2025, GSS recorded a much sharper decline in food inflation and a marginal decline in non-food inflation. Food prices had been falling consistently for the past four months. A two-percentage-point drop was recorded between November 2024 and February 2025.
The Bank of Ghana recently increased its key interest rate by 100 basis points to 28 per cent. The central bank said this was necessary to curb inflation through tighter monetary policies. However, Governor Johnson Asiama warned that inflation remains “uncomfortably high” and well above the target range of 6 to 10 per cent.
Finance Minister Cassiel Ato Forson, during his budget speech in March, projected that inflation could drop to 11.9 per cent by the end of the year. He said aggressive spending cuts and other fiscal measures would help achieve this goal.
In February, Ghana’s inflation rate stood at 23.1 per cent, down from 23.5 per cent in January. The GSS said this decline was due to a slowdown in non-food inflation. However, food prices remained high. The cedi’s recent stability also helped lower the cost of imported goods. This contributed to the overall slowdown in inflation.
Inflation rates varied across regions. The Volta Region recorded the lowest rate at 18.1 per cent, while the Upper West Region had the highest at 35.5 per cent. Food and non-alcoholic beverage inflation stood at 28.1 per cent. Non-food inflation was recorded at 18.8 per cent. Although inflation is gradually easing, the central bank has warned that returning to its target range will take time.
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