Ghana’s inflation rate rose to 23.5% in January 2025, reflecting a sustained increase in the prices of goods and services, according to the latest Consumer Price Index (CPI) report from the Ghana Statistical Service (GSS).
The data, released on February 3, 2025, indicates a year-on-year inflation rate of 23.5%, marking the percentage change in prices between January 2024 and January 2025. The monthly inflation rate for January 2025 stood at 1.7%, showing a moderate increase compared to previous months.
Food vs. Non-Food Inflation
The Food and Non-Alcoholic Beverages category experienced a higher inflation rate of 28.3%, significantly outpacing the Non-Food inflation rate of 19.2%. This indicates that food prices have been rising faster than non-food items, posing concerns for household budgets and food security.
Regional Disparities
Inflation rates varied across regions, with the Upper West Region recording the highest rate at 34.3%, while the Volta Region had the lowest at 17.1%. Notably, eight regions surpassed the national average inflation rate of 23.5%, highlighting significant regional disparities in price changes.
Economic Implications
The persistent high inflation poses challenges for consumers, businesses, and policymakers, impacting purchasing power and economic stability. The Bank of Ghana is expected to review its monetary policies to manage inflationary pressures while balancing economic growth objectives.
