The Ghana Statistical Service (GSS) has announced the sixth consecutive reduction in the inflation rate this year so far.

As of June, the country recorded a 13.7 percent rate, a 4.7 percent decline from the 18.4 percent rate reported in May. This is also the lowest rate recorded since February 2022.

Government Statistician, Dr. Alhassan Iddrisu, following data released on July 2, noted that the reduction in rate was due to the decline in prices of foodstuffs and items.

"The downward inflationary trend over the last 6 months provides some consistency and assurance of real sustained shift in prices," Dr Alhassan said.

Due to the appreciation of the cedi, the prices of goods and services have seen a relative decline.

Food inflation fell by 6.5 percentage points to 16.3 percent, down from 22.8 percent in May, whereas non-food inflation dropped by 3 percentage points to 11.4 percent.

The Upper West region recorded the highest regional inflation of 32.3%, largely due to food inflation and utilities.The Bono region recorded the lowest of 8.4%.

Prior to the release of GSS's recent data, an economic research firm, IC Research, projected that Ghana’s inflation rate will experience a significant decline, dropping to 16% by the end of June.

According to IC Research, the projected improvement is partly driven by the appreciation of the local currency and a reduction in fuel prices, both of which are easing inflationary pressures.

“The June 2025 CP [Consumer Price Index]I data window recorded a 29.5% month-on-month and 35.3% year-on-year appreciation of the Ghanaian cedi against the US dollar.

"This exerted downward pressure on prices of imported items with notable declines in petroleum prices and transport fares. The announced 15.0% reduction in commercial transport fares will continue to restrain transport inflation with downside spillovers for other items,”

“Additionally, we estimate that the lower transport cost likely eased the month-on-month pressure observed for vegetables & tubers last month, potentially sustaining food disinflation in June [2025]. Consequently, we forecast a 240 basis points decline in the June 2025 annual inflation to 16.0% with the month-on-month rate at 0.8%", IC Research added.

Ghana ended the year 2024 with 23.8% inflation. In January 2025, inflation slightly declined to 23.5%. And since then it has continued to ease. In February inflation declined to 23.1%; it saw another decrease in March to 22.4% and declined again in April to 21.2%.

Discussing improvement with macroeconomic variables - exchange rate—the cedi has appreciated by approximately 24% against the US dollar, contributing to a decline in inflation.