Ghana’s inflation rate has decreased to 23.5% in January 2025, marking a slight decline following four consecutive months of rising inflation. This development comes after the government failed to meet its 2024 year-end inflation target of 15%, with inflation reaching 23.8% in December 2024, up from 23.0% in November.
While this reduction in the overall inflation rate signifies a positive step, food inflation continues to pose a significant challenge. The cost of food items saw an uptick, rising to 28.3% in January 2025, compared to 27.8% in December 2024. The persistent increase in food prices remains a key concern for households across the nation.
On a brighter note, non-food inflation saw a decline, dropping to 19.2% in January from 20.3% in December. This trend suggests that the prices of non-food items, such as housing, transportation, and utilities, are stabilizing after previous hikes.
In his explanation of the latest figures, Government Statistician Professor Samuel Kobina Annim emphasized that the overall price level of goods and services increased by 23.5% between January 2024 and January 2025. He noted that this reflects a disinflationary trend, as the rate of inflation slowed down by 0.3 percentage points compared to the year-end 2024 figure of 23.8%.
“The slight drop in inflation in January indicates a moderation in price increases,” Professor Annim explained. “It is a positive sign, though inflationary pressures, particularly in the food sector, continue to challenge the economy.”
Despite this marginal slowdown, the continued rise in food inflation presents an ongoing challenge for the government, highlighting the need for strategic interventions to address the root causes of food price increases.
picture credit : movement tv online
