In February 2025, Ghana’s inflation rate decreased to 23.1%, down from 23.5% in January. This marks the second consecutive month of disinflation, although the rate is among the highest recorded in ten months. Key categories like food and housing continue to drive inflation rates, necessitating ongoing economic analysis.
In February 2025, Ghana’s inflation rate decreased by 0.4 percentage points to 23.1% year-on-year, as reported by the Ghana Statistical Service (GSS). This decline follows a rate of 23.5% recorded in January. The report highlights disinflation for both year-on-year and month-on-month indicators for the second consecutive month, although the current rate remains one of the highest over the past ten months, matching that of May 2024.
Additionally, the month-on-month inflation dropped by a similar margin, marking the third consecutive month of decline, halving the November 2024 rate of 2.6%. Notably, three categories—Food and non-alcoholic beverages (28.1%); Alcoholic beverages, tobacco, and narcotics (25.6%); and Housing, water, electricity, gas, and other fuels (24.3%)—have inflation rates exceeding the overall figure of 23.1%. Conversely, food and non-alcoholic beverages are the only category with a month-on-month inflation rate surpassing the overall rate.
The report identifies vegetables, tubers, and plantains as significant contributors to food inflation, with an annual rate of 45.5% representing a substantial part of the overall food inflation. The GSS signifies a notable gap of 9.3 percentage points between the food inflation rate (28.1%) and the non-food inflation rate (18.8%). In February, both year-on-year and month-on-month food inflation rose slightly, with month-on-month food inflation (1.8%) higher than non-food inflation (0.9%) by 0.7 percentage points.
Although the overall inflation outlook shows a decrease, the GSS indicates that year-on-year food inflation has diminished for the first time in the past five months, while non-food inflation continues its gradual decline for the fifth consecutive month. This situation reflects ongoing economic adjustments within Ghana.
In conclusion, Ghana’s inflation rate for February 2025 has decreased to 23.1%, showcasing a slight yet significant change in the economic landscape. Although inflation has shown signs of disinflation for consecutive months, the current rate remains high, influenced by substantial increases in food prices. As economic trends evolve, monitoring inflation across various sectors will be crucial for policy planning and economic strategies.
Original Source: www.ghanabusinessnews.com
