Ghana’s inflation drops to 12.1% in July, lowest since 2021

Ghana’s annual inflation rate fell for the seventh consecutive month to 12.1 per cent in July, down from 13.7 per cent in June, marking the lowest level since October 2021, Government Statistician Dr. Alhassan Iddrisu announced today.

Speaking at a press briefing in Accra today, Dr. Iddrisu noted that the sustained decline signals easing price pressures but warned of persistent regional disparities and short-term volatility. 

"The downward inflationary trend over the last seven months provides consistency and assurance of a real sustained shift in prices," he said. "However, the volatility in month-on-month rates should be watched closely."

Food inflation, though still the dominant contributor at 15.1 per cent (down from 16.3 per cent in June), showed signs of stabilisation. However, staples like ginger (128.4 per cent inflation), yam (33.3 per cent), and vegetable oil (52.3 per cent) recorded sharp price surges. Non-food inflation dropped to a single-digit 9.5 per cent, with housing and utilities seeing the steepest decline (19.0 per cent from 24.9 per cent in June).

Regional divide

The Upper West Region remained Ghana’s inflation hotspot at 24.8 per cent, driven by soaring food prices (26.9 per cent) and utilities (73.6 per cent). In contrast, the Central Region recorded the lowest inflation at 7.7 per cent. Dr. Iddrisu emphasised the need for targeted interventions: "The 17.1-percentage-point gap between the highest and lowest regions makes national averages misleading. Policy responses must be localised."

Short-term pressures

Month-on-month inflation rose by 0.7 per cent, reflecting lingering cost pressures. Services, including healthcare and education, saw a 1.3 per cent increase, while imported goods inflation eased to 10.0 per cent, aided by currency stability.

Recommendations

The Ghana Statistical Service urged households to adopt energy-saving measures and bulk-buy staples, while businesses were advised to prioritise local sourcing. For policymakers, Dr. Iddrisu stressed "tailored social protection programmes" for high-inflation regions like Upper West.

The July figures represent an 11.7-percentage-point drop from December 2024’s peak of 23.8 per cent, offering cautious optimism for economic recovery.