Ghana’s inflation rate fell to 5.4% year on year in December 2025, marking the 12th consecutive month of deflation, according to figures issued by the Ghana Statistical Service.
Dr Alhassan Iddrisu, the Government Statistician, presented the December inflation numbers in Accra, saying the Consumer pricing Index stood at 261.7 in December 2025, compared to 240.8 in the same period a year earlier, indicating a continuing reduction of pricing pressures across the economy.
“This means that, on average, goods and services cost 5.4 per cent more than they did in December 2024, this result is significant because inflation has now declined for 12 consecutive months. It fell from 6.3 per cent in November 2025 and from 23.8 per cent in December 2024, representing a reduction of 18.4 percentage points within a year,” Dr Iddrisu said.
After a protracted period of high inflation, he characterised the ongoing reduction as proof of better macroeconomic conditions and a clear trend towards price stability.
In December 2025, month-over-month inflation was 0.9%, indicating a little rise in prices from November to December. According to Dr. Iddrisu, the data indicated that short-term price fluctuations were now occurring within a long-term trend that was stable and declining.
When compared to November 2025 and December 2024, a breakdown of the data revealed that inflation decreased for both locally produced and imported products and services, food, and non-food categories.
One of the biggest drops was seen in food inflation, which dropped to 4.9% in December 2025 from 6.6% in November and 27.8% a year earlier. According to Dr. Iddrisu, this was a 22.9 percentage point decrease over the previous year.
This is significant because around 43% of household expenditures go towards food.
He pointed out that reduced food inflation immediately relieves pressure on household budgets.
Dr. Iddrisu warned that short-term price variations could still occur even as longer-term pressures lessened, citing seasonal factors as the primary cause of the 1.1% month-over-month increase in food costs despite the annual drop.
Additionally, non-food inflation considerably decreased, falling from 6.1% in November and 20.3% in December 2024 to 5.8% in December. While month-to-month non-food inflation was 0.6%, this represented a 14.5 percentage point decrease over the previous year.
According to Dr. Iddrisu, “these trends show broad-based disinflation across both food and non-food categories rather than improvements driven by a single component.”
Additional information revealed decreasing inflation in the main food subclasses, such as meat products, vegetables, cereals, and seafood. Due to seasonal factors, certain categories saw slight month-to-month gains, but towards the end of the year, a number of commodities showed clear drops.
Goods inflation decreased by 17.3 percentage points throughout the course of the year, from 7.3% in November and 23.1% in December 2024 to 5.8% in December 2025.
“Goods account for nearly three quarters of the CPI basket, so this slowdown provides relief where it matters most to consumers,” Dr. Iddrisu stated.
Month-over-month, prices for goods increased by 0.8%, while inflation for services increased slightly from 3.8% in November to 4.5% in December.
Services inflation decreased by 10.9 percentage points during the course of the year, staying significantly below the 15.4% recorded in December 2024.
December saw a 0.9% month-over-month increase in service costs.
Source: newsthemegh.com