Ghana closed 2025 with its strongest inflation performance in years, as price pressures continued to ease and household costs showed signs of stabilising.
Data for December indicate that inflation slowed to 5.4 percent, extending a steady downward trend that has now lasted an entire year.
The latest figure represents a sharp improvement from 6.3 percent recorded in November and a dramatic fall from the 23.8 percent seen in December 2024.
The December reading is the lowest recorded since the consumer price index was rebased in 2021, signalling a notable shift toward price stability after months of sustained disinflation.
On a monthly basis, prices rose by 0.9 percent between November and December, suggesting that while costs are still rising slightly, they are doing so at a much slower and more manageable pace compared to previous years.
Price moderation was observed across nearly all major spending categories, indicating that the slowdown is broad-based rather than limited to a few items.
Food and non-food items, locally produced goods and imports all recorded reduced inflation rates, reinforcing the view that underlying price pressures are easing across the economy.
Food inflation, which carries the heaviest weight in household spending, declined significantly to 4.9 percent year-on-year in December.
This is down from 6.6 percent in November and 27.8 percent at the same time last year, offering meaningful relief to families grappling with rising living costs.
However, food prices edged up slightly on a month-on-month basis by 1.1 percent, largely due to seasonal supply factors.
Non-food inflation also continued its downward path, easing to 5.8 percent from 6.1 percent in the previous month and 20.3 percent a year earlier. Monthly price changes in this category remained modest at 0.6 percent, pointing to contained cost pressures.
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A closer look at food prices shows that the slowdown was widespread, with vegetables, cereals, fish and meat products leading the decline.
Although short-term price movements persisted due to seasonal dynamics, several food groups recorded marginal increases or price drops by the end of the year.
Overall, the sustained decline in inflation reflects improving macroeconomic conditions and offers cautious optimism for households and businesses as Ghana enters the new year with stronger price stability.
