August inflation drops to 11.5%, lowest in 4 years; beats end-year target

 


Ghana’s year-on-year inflation for August 2025 declined marginally to 11.5%, down from 12.1% recorded in July 2025, according to data released by the Ghana Statistical Service.

This marks the eighth consecutive decline in inflation this year and the lowest rate in four years, falling below the government’s end-year target of 11.9% for 2025.


The slowdown was largely driven by a drop in the general price levels of foodstuffs and other key items.

Government Statistician, Dr. Alhassan Iddrisu, noted that the consistent decline indicates easing pressures on inflation in recent months.

On a month-on-month basis, the general price level fell by 1.3% between July and August 2025, offering some relief to households.


Food vs. Non-Food Inflation

Food inflation dropped to 14.8% in August, down from 15.1% in July, representing a 2.5% decline in the rate of increase.

Non-food inflation also fell to 8.7% from 9.5% over the same period.

Inflation for locally produced items declined to 12.2% from 12.9%, while imported goods saw a dip to 9.5% from 10.0% in July.


Regional Breakdown

The Upper West Region continued to record the highest inflation at 21.8%, though it dropped from 24.8% in July. This figure is almost double the national average.

Conversely, the Bono Region recorded the lowest regional inflation at 6.1%.

The data underscores a positive outlook for price stability as Ghana continues to recover from previous economic pressures.


SourceJames Eshun 

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