Headline Inflation Drops to 18.4% in May, Lowest Since February 2022
Inflation for the month of May 2025 has dropped significantly to 18.4% year-on-year, down from the 21.2% recorded in April 2025.
According to the Ghana Statistical Service (GSS), the notable decline in inflation is largely attributable to reductions in transportation fares and a decline in non-food inflation.
This marks the fifth consecutive monthly drop in the national inflation rate for the year, signaling a sustained deceleration in the rate of price increases. The May inflation rate is also the lowest Ghana has recorded since February 2022.
Providing a breakdown of the figures, Government Statistician, Dr. Alhassan Iddrisu, noted that falling fuel prices at the pumps – and the corresponding reduction in transport fares – had the most significant impact on the May inflation data.
“Reductions in fuel prices and transport fares were the dominant contributors to the slowdown in inflation for May,” stated Dr. Iddrisu.
At the regional level, inflation disparities remain pronounced. The Upper West Region recorded the highest year-on-year inflation rate of 38.1%, while the Ahafo Region posted the lowest at 14.5%.
The continued decline in inflation comes on the back of the Bank of Ghana’s tight monetary policy stance and relative stability in the cedi, with analysts expecting the reduction in headline inflation rate for May to influence the July monetary policy rate decision by the Monetary Policy Committee (MPC).
