Ghana’s Inflation Drops to 18.4% in May, Lowest Since 2022 Amid Falling Transport Costs

Ghana’s annual inflation rate dropped sharply to 18.4% in May 2025, marking a significant decline from April’s 21.2%. This development represents the lowest inflation level since February 2022 and signals a continuation of the country’s five-month-long disinflation trend. The latest data reflects a gradual but consistent easing of inflationary pressures after the country experienced a spike in consumer prices in the past few years.

According to the Ghana Statistical Service (GSS), the downward trend in inflation was primarily driven by a decrease in transport costs and a general slowdown in non-food price increases. Government Statistician Dr. Alhassan Iddrisu noted during a press conference that recent cuts in fuel prices contributed to lower transport fares, significantly easing cost pressures for consumers.

Food inflation, although still high, has shown signs of softening, while service and transport-related expenses recorded the most substantial drop. This combination has provided moderate relief for household budgets across the country, though challenges remain, especially in areas still experiencing higher costs.

There are still marked regional disparities in inflation rates. The Upper West Region recorded the highest inflation at 38.1%, largely due to persistent food and transport price hikes. In contrast, the Ahafo Region experienced the lowest rate at 14.5%, indicating relatively more stable economic conditions in that area.

The sustained drop in inflation is expected to boost investor and public confidence in Ghana’s economic recovery. Analysts suggest that the latest figures will reinforce the central bank’s current monetary policy approach, offering a promising outlook for further stabilization in the months ahead.

Source: Citi newsroom