Ghana’s Inflation to 22.4% in March 2025, Marking Third Consecutive Decline
Ghana’s inflation rate has continued its downward trajectory for the third consecutive month, dropping to 22.4% in March 2025 from 23.1% in February. This marks the lowest inflation rate in the past four months, driven primarily by a decline in food prices, according to the Ghana Statistical Service (GSS).
The sustained decrease in inflation is a positive sign for the country’s economy, which has been struggling with high consumer prices over the past year. The decline is largely attributed to the stabilization of food costs, as agricultural supply chains improve and the local currency, the Ghanaian cedi, shows signs of stability against major foreign currencies.
Factors Contributing to the Decline
The latest inflation data shows that food inflation, a key driver of Ghana’s overall consumer price index, has eased significantly. In March, food inflation stood at 26.2%, down from 27.8% in February. Prices of staple commodities such as maize, rice, and vegetables have seen a relative drop, easing the burden on households.
Additionally, non-food inflation also saw a slight decline, settling at 19.5% in March compared to 20.1% in February. The moderation in transport costs and housing prices has contributed to the overall decrease in inflation.
The Ghanaian government and the Bank of Ghana (BoG) have been implementing various measures to curb inflation and stabilize the economy. The central bank recently raised its benchmark policy rate by 100 basis points to 28% in a bid to tackle persistent inflationary pressures. This move, though unexpected, is aimed at controlling liquidity in the financial system and ensuring price stability in the long run.
Government’s Efforts to Control Inflation
Ghana’s Finance Minister, Cassiel Ato Forson, has stated that the government is committed to reducing inflation further. As part of its economic strategy, the government has announced significant budget cuts to manage the fiscal deficit. The goal is to bring inflation down to 11.9% by the end of the year, in line with the central bank’s target range of 8% ± 2%.
“The reduction in inflation is a promising sign, but we must remain vigilant. The government will continue implementing prudent fiscal policies to ensure we sustain this progress,” Forson said in a press briefing.
Impact on the Economy and Citizens
The recent decline in inflation offers some relief to Ghanaians, many of whom have struggled with rising living costs. Lower inflation translates to slower price increases for goods and services, improving purchasing power and consumer confidence.
However, analysts warn that external economic pressures, including fluctuations in global commodity prices and exchange rate volatility, could still pose challenges to Ghana’s inflation trajectory. The government and central bank will need to maintain a balanced approach in monetary and fiscal policies to sustain this positive trend.
As Ghana moves forward, economists suggest that continued investment in local production, agricultural output, and trade policies will be key to ensuring long-term economic stability and inflation control.
For now, the steady decline in inflation provides optimism that Ghana’s economic recovery is on track, offering hope to businesses and consumers alike.
Here is the full news report on Ghana's inflation decline.
blogpay
to 22.4% in March 2025, Marking Third Consecutive Decline
Total Comments: 0