Inflation Slows to 12.1% in July, But Soaring Food Prices and Regional Gaps Keep Pressure on Ghanaian Households

 

Inflation in Ghana slowed for the seventh consecutive month in July 2025, falling to 12.1% year-on-year from 13.7% in June. This marks the lowest annual inflation rate since October 2021 and signals a continued easing of inflationary pressure after a peak of 23.8% in December 2024.

Government Statistician, Dr. Alhassan Iddrisu, who presented the Consumer Price Index (CPI) report, described the drop as “reassuring,” but warned that persistent increases in monthly prices and sharp regional differences could erode household gains if not addressed through targeted action.

Month-on-month inflation stood at 0.7%, slightly up from previous months, suggesting that while long-term inflation is falling, short-term price pressures remain active, especially on food, utilities, and services.

What’s Driving Prices?
Food inflation, the biggest contributor to overall inflation, dropped from 16.3% in June to 15.1% in July. However, food still contributed more than half of the total inflation figure. Prices of key staples like ginger (128.4% inflation), smoked herrings, and yams remained stubbornly high.

Non-food inflation also eased significantly to 9.5%, with notable declines in housing, utilities, and financial services. Prices for local goods rose by 0.9% between June and July, compared to just 0.1% for imported items, pointing to local supply-side pressures that need urgent attention.

Dr. Iddrisu noted that although services inflation dropped to 6.2%, prices in that category, including rent, health, and transport rose by 1.3% in a single month, adding to everyday household burdens.

Regional Disparities Widening
A sharp regional divide in inflation continues to trouble policymakers. The Upper West Region recorded the highest inflation rate at 24.8%, more than double the national average. This was driven by a mix of high food inflation (26.9%) and eye-watering housing and utility inflation (73.6%). In contrast, the Central Region recorded the lowest at 7.7%.

“The disparities between regions are stark, and national averages are increasingly misleading,” Dr. Iddrisu cautioned. “Policy responses must be tailored to reflect local realities.”

Everyday Items Still Costing More
The most inflationary items in July included smoked herrings, yams, ginger, vegetable oil, and even cinema and cultural services. Ginger alone recorded a staggering 128.4% annual inflation. Electricity and rent showed significant reductions in price growth, but still remain costly for many households.

Looking Ahead: What Can Be Done?
While the headline inflation is down, the Ghana Statistical Service recommends practical steps for households, businesses, and policymakers.

For households, buying in bulk and reducing utility use can help manage costs. For businesses, switching to local inputs and focusing on high-demand products can reduce exposure to price volatility.

The government is urged to monitor high-inflation regions like the Upper West more closely and adapt support programmes such as LEAP, NHIS outreach, and school feeding schemes to regional needs.

Ghana’s inflation outlook may be improving, but the cost of living remains a daily concern for many households. As Dr. Iddrisu put it, “This is not the time to relax. Smart, targeted actions are needed to ensure that the gains from falling inflation translate into real relief for everyone.”