Prime News Ghana

Ghana's inflation drops for 12th straight month to 5.4% in December 2025

By Primenewsghana
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Ghana’s inflation rate fell to 5.4 percent in December 2025, extending a disinflation trend that has now lasted 12 consecutive months.

The rate slowed from 6.3 percent in November 2025 and 23.8 percent in December 2024, marking a decline of 18.4 percentage points over the year.

The December outcome is the lowest inflation reading since the consumer price index was rebased in 2021, demonstrating a sustained shift toward price stability amid improving macroeconomic conditions.

On a month-on-month basis, inflation stood at 0.9 percent in December, meaning prices increased modestly between November and December 2025. While short-term price movements persist, they are now occurring within a stable and clearly downward long-term trend.

A breakdown of the data shows that inflation eased across most major components of the consumer basket. Food, non-food, goods, and both locally produced and imported items all recorded slower price increases compared with November, pointing to broad-based disinflation rather than relief driven by a single category.

Food inflation, which accounts for about 43 percent of household spending, fell to 4.9 percent year-on-year in December, down from 6.6 percent in November and 27.8 percent a year earlier.

This represents a 22.9 percentage point decline over the past 12 months, providing meaningful relief to household budgets. However, food prices rose 1.1 percent month-on-month, reflecting seasonal and short-term supply pressures.

Non-food inflation also moderated, easing to 5.8 percent in December from 6.1 percent in November and 20.3 percent in December 2024. This marks a 14.5 percentage point decline over the year, with month-on-month non-food prices rising by a modest 0.6 percent, indicating contained pressure.

Disaggregated food data show that the slowdown was broad-based across all major subclasses, led by vegetables, cereals, fish and meat products. While prices fluctuated month-to-month due to seasonal factors, most food groups recorded modest increases or outright declines by December.