In February 2025, Ghana’s inflation rate decreased by 0.4 points to 23.1%. This marks the second consecutive month of disinflation. The month-on-month inflation also declined by 0.4 points, with food inflation primarily driving year-on-year increases. Despite these declines, certain savings remain high, particularly in specific categories like food and non-alcoholic beverages.
In February 2025, Ghana’s inflation rate decreased by 0.4 percentage points, reaching 23.1% year-on-year, as reported by the Ghana Statistical Service (GSS). This decline follows the January inflation rate of 23.5%. Moreover, both the year-on-year and month-on-month rates of inflation have shown a continued decline for the second consecutive month, indicating trends of disinflation despite remaining relatively high.
The month-on-month inflation rate decreased by 0.4 percentage points, marking its third consecutive month of decline. Compared to November 2024’s rate of 2.6%, February’s figures illustrate a significant reduction. Within the economy, three specific categories experienced higher inflation rates than the overall rate, notably: Food and non-alcoholic beverages at 28.1%, Alcoholic beverages, tobacco, and narcotics at 25.6%, and housing, water, electricity, gas, and fuels at 24.3%.
For the month-on-month rates, food and non-alcoholic beverages stood at 1.8%, surpassing the overall rate of 1.3%. The rise in food inflation is primarily attributed to vegetables, tubers, and plantains, which contributed notably to both annual and monthly food inflation. The annual inflation rate for these items continues to dominate at 45.5%.
The GSS reported a significant gap between food inflation at 28.1% and non-food inflation at 18.8%, a difference of 9.3 percentage points. In February 2025, both categories saw slight increases in inflation rates. Month-on-month food inflation was higher than non-food inflation by 0.7 percentage points, with locally produced items showing a higher inflation rate than imported goods, by 6.6 percentage points.
Despite these fluctuations, year-on-year food inflation has decreased for the first time in five months, while non-food inflation has also shown a declining trend for five consecutive months, albeit marginally.
Ghana’s inflation rate for February 2025 reflects a gradual slowdown in inflationary pressures, with the year-on-year rate decreasing to 23.1% from January’s 23.5%. This marks the second month of disinflation, with notable contributions from food inflation driven mostly by vegetables, tubers, and plantains. While certain categories experienced higher inflation than the overall rate, the decrease in inflation rates, particularly in food items, signifies a potential easing of economic pressures.
Original Source: www.ghanabusinessnews.com
