Sustained Disinflation Continues as Ghana Ends 2025 with 5.4% Headline Inflation
Headline inflation rate extended its downward trend in December 2025, easing to 5.4 percent year on year, marking the 12th successive month of disinflation and the lowest level recorded since the Consumer Price Index (CPI) was rebased in 2021, data released by the Ghana Statistical Service (GSS) show.
Addressing the media in Accra, Government Statistician Dr. Alhassan Iddrisu said the CPI for December 2025 rose to 261.7, compared with 240.8 in December 2024, reflecting a notable slowdown in overall price increases over the period.
“This indicates that, on average, prices of goods and services were 5.4 percent higher than in December 2024,” Dr. Iddrisu explained. “The outcome is particularly significant as inflation has now declined for twelve consecutive months, falling from 6.3 percent in November 2025 and sharply from 23.8 percent in December 2024, amounting to a year-on-year reduction of 18.4 percentage points.”
He said the persistent downward movement underscores improving macroeconomic fundamentals and signals a clearer shift toward price stability.
On a month-on-month basis, inflation measured 0.9 percent in December 2025, pointing to a slight rise in prices between November and December. Dr. Iddrisu noted that although short-term price changes continue, they are occurring within a broader and sustained downward inflation trajectory.
A breakdown of the data showed that inflation moderated across food and non-food items, as well as goods and services, and for both locally produced and imported products, relative to November 2025 and December 2024.
Annual food inflation declined markedly to 4.9 percent in December 2025, from 6.6 percent in November and 27.8 percent a year earlier, translating into a 22.9 percentage point drop over the year.
“This is important given that food accounts for roughly 43 percent of household expenditure. Lower food inflation provides immediate relief to household budgets,” the Government Statistician observed.
Despite the improvement, he cautioned that food prices still increased by 1.1 percent month on month, suggesting that while longer-term pressures have eased, short-term movements persist, largely due to seasonal influences.
Non-food inflation also eased significantly, slowing to 5.8 percent in December, down from 6.1 percent in November and 20.3 percent in December 2024, representing a 14.5 percentage point decline over the year. Month-on-month, non-food prices rose by 0.6 percent, indicating relatively moderate pressure.
“These developments point to a broad-based disinflation process across both food and non-food categories, rather than gains driven by a single segment,” Dr. Iddrisu said.
Further analysis of food inflation showed declines across major sub-categories, including vegetables, cereals, fish, and meat products. While month-to-month price movements reflected seasonal patterns, most food groups recorded only modest increases or outright declines by December.
The data also highlighted a pronounced slowdown in goods inflation, which fell to 5.8 percent in December 2025, from 7.3 percent in November and 23.1 percent in December 2024, marking a 17.3 percentage point reduction over the year.
“Goods make up nearly three-quarters of the CPI basket, so this moderation delivers relief where it matters most for consumers,” Dr. Iddrisu noted.
Goods prices rose by 0.8 percent month on month, while services inflation edged up slightly to 4.5 percent in December, from 3.8 percent in November. Nevertheless, services inflation remains well below its 15.4 percent level in December 2024, reflecting a 10.9 percentage point decline over the year.
On a monthly basis, services prices increased by 0.9 percent between November and December 2025.
Overall, the December inflation figures point to a continued easing of price pressures across the economy, reinforcing confidence in Ghana’s disinflation trajectory as the country closed 2025 with stronger macroeconomic stability.
