The announcement by the Ghana Statistical Service (GSS) that inflation declined to 5.4 per cent in December 2025 is heartening news for the economy and Ghanaian consumers.
This development marks a major milestone in the country’s efforts to restore price stability after a prolonged period of elevated inflation.
According to the GSS, the December 2025 inflation rate represents the 12th consecutive month of disinflation and the lowest level recorded since the rebasing of the Consumer Price Index (CPI) in 2021.
Presenting the figures in Accra last week, the Government Statistician, Dr Alhassan Iddrisu, explained that the CPI rose from 240.8 in December 2024 to 261.7 in December 2025, translating into a year-on-year inflation rate of 5.4 per cent.
The significance of this achievement becomes clearer when viewed against the backdrop of inflation of 23.8 per cent in December 2024 and 6.3 per cent in November 2025. Within one year, inflation has declined by an impressive 18.4 percentage points, signalling improving macroeconomic conditions and a firm move towards price stability.
It is encouraging that the GSS stated the reduction in inflation has been broad-based, meaning the decline is coming from both food and non-food items.
Food inflation declined sharply on an annual basis to 4.9 per cent in December 2025, down from 6.6 per cent in November and as high as 27.8 per cent in December 2024. This represents a substantial 22.9 percentage point reduction over the year. Given that food accounts for about 43 per cent of household expenditure, a decline in food inflation offers significant relief to families and helps ease pressure on household budgets.
Non-food inflation also recorded a notable decline, easing to 5.8 per cent in December from 6.1 per cent in November and 20.3 per cent a year earlier.
High inflation remains a major challenge to socio-economic development. For households, inflation reduces the value of their income and makes it harder to afford basic needs. For businesses, rising inflation increases production costs and disrupts budgets. Inflation also affects the government by increasing the cost of executing public projects and making it difficult to meet revenue targets.
As a result, falling inflation comes as a relief to consumers, as they can buy more with the income they have. It also benefits businesses by making budgeting easier and improving predictability in sourcing raw materials for production.
The Ghanaian Times commends the government for the economic policies and decisions it has implemented, which have contributed to this achievement. Fiscal discipline, prudent monetary management, and structural reforms appear to be yielding positive results, and these efforts deserve recognition.
It is our hope that the success in taming inflation will be sustained to preserve the gains made so far. Maintaining low and stable inflation is crucial for economic growth, investment, and improved living standards for the citizenry.
We also urge traders and the business community to reflect the declining inflation in their pricing decisions. Reducing or maintaining prices in line with current economic realities will help ensure that the benefits of macroeconomic stability are passed on to consumers.
The progress recorded is encouraging, but sustaining it will require consistency, discipline, and collective responsibility to keep Ghana firmly on the path of economic stability and shared prosperity.
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