Ghana’s Government Statistician, Dr. Alhassan Iddrisu, has clarified that the recent decline in inflation to 9.4 percent does not mean food prices have stopped increasing.
Speaking on Channel One TV on Wednesday, Dr. Iddrisu explained that while the drop from 23.8 percent in December 2024 marks a significant improvement, prices of goods, particularly food, will continue to rise, albeit at a slower pace.
“The decline in inflation to 9.4 percent is the lowest Ghana has recorded in four years,” he noted. “However, this does not mean prices are falling. It only means they are increasing more slowly than before.”
Dr. Iddrisu said the lower inflation rate signals growing price stability and offers relief for households and businesses alike.
“Families can now plan school fees, rent payments, and grocery shopping with less fear of sudden price hikes,” he said. “Last year, many households experienced price increases of between 20 and 30 percent. Now, adjustments are much smaller.
For businesses, this brings stability in input costs and lending conditions. Because inflation influences the policy rate, and, by extension, interest rates, lower inflation softens borrowing costs. This enables businesses to access funds more easily, make better investment decisions, and manage risks more effectively.”
The Government Statistician urged government and stakeholders to maintain efforts that have contributed to this economic progress. He stressed that sustaining single-digit inflation will require continued discipline and coordination.
“We can achieve lasting stability by keeping public spending disciplined, supporting local food production, and maintaining effective policy coordination,” Dr. Iddrisu said. “That is how we can turn this progress into lasting growth and real relief for households.”
Dr. Iddrisu concluded that the 9.4 percent inflation rate represents a positive sign of economic recovery but underscored that food prices are still rising, emphasizing the need for consistent policy actions to sustain this downward inflation trend.
