Inflation Drops to 18.4% in May—Ghana’s Lowest Since 2022

Ghanaians are beginning to feel a bit of relief as inflation for May 2025 has dropped sharply to 18.4%, down from 21.2% in April.

This is the lowest inflation rate recorded since February 2022, bringing some hope in the ongoing fight against rising living costs.

The announcement came from the Ghana Statistical Service (GSS) on Tuesday, June 4, and marks the fifth consecutive month of inflation decline in 2025.

According to Government Statistician Dr. Alhassan Iddrisu, the decrease is largely due to a drop in fuel prices at the pumps, which led to a reduction in transportation fares, making it less expensive for people to travel and move goods across the country.

In addition, a fall in non-food inflation—which includes things like housing, clothing, and healthcare—also contributed to the easing price pressures.

“The reduction in fuel prices and the consequent decline in transport fares had the biggest impact on the inflation figures for May,” Dr. Iddrisu explained.

This downward trend suggests that while prices are still increasing, they are doing so at a slower pace than before.

Inflation measures how fast the cost of goods and services rises over time. A drop means people may start to feel less strain on their pockets, especially when it comes to everyday items like transportation and essentials outside of food.

However, the report also highlights that inflation is not the same across the country. The Upper West Region recorded the highest inflation rate at 38.1%, showing that some regions are still struggling with high prices. Meanwhile, the Ahafo Region had the lowest rate at 14.5%.

Analysts say this positive trend could encourage the Bank of Ghana to maintain or even reduce policy rates in the coming months, which might make borrowing cheaper for businesses and households.

Still, economists caution that global price movements and domestic factors like taxes and exchange rates could change the direction of inflation in the future.

For now, the steady decline is a welcome sign for many Ghanaians, especially as the cost of living has weighed heavily on families over the past two years.