Farming grew by 6.6%, fishing 16.4%, food prices will drop – Ato Forson
Food inflation in Ghana has dropped by 11.5 percentage points over the past six months, supported by strong growth in the agriculture sector.
Finance Minister Dr Cassiel Ato Forson told Parliament on July 24, 2025, during the presentation of the 2025 Mid-Year Budget Review, that food inflation declined from 27.8 per cent in December 2024 to 16.3 per cent in June 2025.
He said the trend points to further reductions in food prices as agricultural production continues to improve.
The agriculture sector recorded growth of 6.6 per cent in the first half of 2025, the highest since the onset of the economic downturn and accounted for 26.4 per cent of Ghana’s total GDP growth of 5.3 per cent during the period.
“The drastic fall in inflation is not by chance or sheer luck but as a result of hard work and deliberate government policies,” Dr Forson said. He cited the Agriculture for Economic Transformation Programme and other targeted initiatives as contributing factors.
The fishing sub-sector recorded 16.4 per cent growth, the strongest within the sector. According to Dr Forson, this is expected to ease pressure on protein prices while increasing incomes for fisherfolk and coastal households.
Overall consumer price inflation also declined from 23.8 per cent in December 2024 to 13.7 per cent in June 2025. This represents a drop of 10.1 percentage points and puts the government ahead of schedule to meet its end-of-year inflation target of 11.9 per cent.
Dr Forson said the government’s economic strategy, anchored on the agricultural sector, the proposed 24-hour economy, and the Big Push Programme, was designed to sustain current growth levels and possibly exceed the 2025 GDP growth target of 4 per cent.
Non-oil GDP grew by 6.8 per cent during the first half of 2025, up from 4.3 per cent in the same period last year. According to the Finance Minister, this is the highest non-oil growth rate since 2018.
“With the introduction of our 24-hour economy policy, the Big Push Programme, and the Agriculture for Economic Transformation Programme, the GDP growth will be sustained and possibly exceed the target,” Dr Forson told the House.
The manufacturing sector also expanded by 6.6 per cent in the first half of the year. The Finance Minister said this suggests an increase in domestic production, which could help reduce dependence on imports and contribute to food price stability.
While food inflation remains outside the Bank of Ghana’s preferred range, the consistent decline has brought some relief to many Ghanaians affected by previous price hikes.
Dr Forson said the fiscal consolidation process is supporting the downward trend in inflation. He assured Parliament that the government is working to meet its end-of-December inflation target ahead of time and added,
“things can only get better in the coming days.”
