Ghana’s inflation rate decreased to 23.1% in February 2025 from 23.5% in January, marking a trend of disinflation for the second consecutive month. Key drivers of inflation include food categories, particularly vegetables. Month-on-month inflation also fell, signifying a sustained reduction over several months.
In February 2025, Ghana’s inflation rate decreased by 0.4 percentage points to 23.1%, as reported by the Ghana Statistical Service (GSS). This decline marks a continuation of disinflation for the second month, following January’s inflation rate of 23.5%. Despite the slowdown, February’s rate remains the third highest over the past ten months, equating to the rate experienced in May 2024.
Additionally, the month-on-month inflation rate also fell by 0.4 percentage points, indicating a consistent decline for three consecutive months, cutting down the November 2024 rate of 2.6%. Notably, three categories recorded year-on-year inflation rates surpassing the overall rate of 23.1%: Food and non-alcoholic beverages (28.1%), Alcoholic beverages, tobacco, and narcotics (25.6%), and housing-related costs (24.3%).
Only the food and non-alcoholic beverages category showed a higher month-on-month rate of 1.8%, exceeding the overall rate of 1.3%. The main drivers of inflation in both annual and monthly terms were linked to vegetables, tubers, and plantains, with annual inflation for these items being particularly high at 45.5%.
The gap between food inflation (28.1%) and non-food inflation (18.8%) stands at 9.3 percentage points. Both food and non-food inflation saw slight increases in February, by 0.2 and 0.4 percentage points, respectively. Month-on-month food inflation recorded at 1.8% was greater than non-food inflation’s 0.9% by 0.7 percentage points, while the inflation discrepancy between locally produced and imported goods measured at 6.6 percentage points.
Interestingly, although food inflation has experienced a slight year-on-year decline for the first time in five months, non-food inflation has continued to ease for five months in succession, albeit marginally.
In summary, Ghana’s inflation rate experienced a slight decline in February 2025, continuing a trend of disinflation. The rate, while lower than in January, remains elevated compared to previous months. Significant distinctions in inflation rates exist between food and non-food categories, driven mainly by high rates of inflation in specific food items. These factors indicate a complex balancing act in addressing inflationary pressures within the Ghanaian economy.
Original Source: www.ghanabusinessnews.com
