Ghana's inflation drops for third consecutive month to 22.4% in March 2025

Ghana’s annual consumer inflation rate has declined for the third consecutive month, reaching 22.4 per cent in March 2025 from 23.1 per cent in February.

According to the Ghana Statistical Service (GSS), the decline is attributed to easing food price pressures.

The Government Statistician, Samuel Kobina Annim, described the development as a drop in inflationary pressures, particularly in food prices.

“The rate of 22.4 per cent is the lowest in the last four months,” he stated at a press conference in Accra on Wednesday.

In March, food inflation fell sharply to 26.5 per cent from 28.1 per cent in February, while non-food inflation registered a marginal decline from 18.8 per cent to 18.7 per cent. 

Inflation for locally produced goods also dropped from 25.1 per cent to 24.0 per cent. However, the inflation rate for imported items inched up slightly to 18.7 per cent from 18.5 per cent in the previous month.

The easing of inflation comes just days after the Bank of Ghana (BoG) made a surprise move by raising its benchmark interest rate by 100 basis points to 28 per cent. The central bank justified the hike, emphasizing the need for a tight monetary policy stance to bring inflation further under control.

“The recent decline in inflation aligns with the monetary measures being implemented to stabilize price growth,” analysts have observed. The BoG’s unexpected rate hike signals a commitment to ensuring price stability amid ongoing economic challenges.

A breakdown of inflation across sectors showed that Food and Non-Alcoholic Beverages recorded an inflation rate of 26.5 per cent, while Housing, Water, Electricity, Gas, and Other Fuels registered 25.1 per cent, both exceeding the national average.

Regionally, the Upper West Region recorded the highest inflation rate at 36.2 per cent, while the Volta Region had the lowest at 18.9 per cent.