“Inflation falls to 8% in October 2025, lowest in four years” - Gov’t Statistician

Ghana’s year-on-year inflation rate fell to 8.0% in October 2025, down from 9.4% in September, marking the tenth consecutive month of decline and the lowest inflation rate recorded in four years, according to the Government Statistician, Dr. Iddrisu Alhassan.

Dr. Alhassan explained that the latest figures from the Ghana Statistical Service (GSS) show a continued slowdown in price increases across the country, signalling growing stability in the cost of goods and services after years of volatility.

“This means that prices in October 2025 were, on average, 8% higher than they were in October 2024.

The October rate represents a 1.4 percentage point drop from the previous month and is well below the 23.8% inflation rate recorded at the end of last year,” Dr. Alhassan said.

On a month-on-month basis, prices fell by 0.4% between September and October, indicating that “things cost slightly less in October than they did in September.”

The GSS report shows that food inflation declined to 9.5% in October from 11.0% in September, driven by reductions in the prices of items such as water, cereals, fruits, and nuts. Month-on-month, food prices fell by 1.0%, reflecting a steady easing in food costs.

Non-food inflation — which covers items such as clothing and rent — also dropped to 6.9% from 8.2% the previous month, with little change in prices over the period.

Inflation for goods such as rice, soap, and fuel fell sharply to 9.3% in October from 11.2% in September, while services inflation — including transport and repairs — eased slightly from 4.8% to 4.6%.

However, Dr. Alhassan noted that service costs rose 0.5% month-on-month, largely due to increases in transport fares and repair services.

Inflation for locally produced goods declined from 10.1% in September to 8.0% in October, with prices dropping 0.7% month-to-month.

In contrast, inflation for imported items rose marginally from 7.4% to 7.8%, accompanied by a 0.3% increase in prices.

The top contributors to October’s inflation were smoked herrings (5.9%), green plantain (5.6%), cinema and cultural services (5.1%), cooked rice (4.6%), and charcoal (4.6%), together accounting for about 26% of total inflation.

Items with the highest individual inflation rates included ginger (94.1%), green plantain (61.6%), cinema and cultural services (52.9%), cashew (41.3%), and lime (39.8%) — most of them food-related, reflecting the continued impact of weather, transport, and supply conditions.

Inflation remained uneven across regions.

• The North East Region recorded the highest rate at 17.3%, down from 20.1% in September, with prices falling 0.8% month-on-month.

• The Bono East Region recorded the lowest inflation rate at 1.1%, slightly below the 1.2% recorded in September, as prices dropped 3.0% between the two months.

“These regional differences often reflect variations in transport costs, food distribution, and market accessibility,” Dr. Alhassan explained.

Dr. Alhassan attributed the sustained decline in inflation to improved food supply, reduced fuel prices, and stronger fiscal discipline.

“The main drivers of inflation remain food and housing, but both are slowing due to better supply conditions and lower fuel prices,” he said.

He advised that for government, maintaining fiscal discipline and investing in storage facilities, irrigation systems, and road networks will be crucial to sustaining stability in food prices.

He further urged businesses to improve efficiency, reduce waste, and source more inputs locally, while encouraging households to budget carefully, avoid unnecessary spending, and save as prices continue to ease.

Dr. Alhassan described Ghana’s inflation trajectory as “a clear sign of economic progress,” adding that sustained collaboration between producers, policymakers, and consumers would help preserve price stability and strengthen the economy.

He concluded by expressing appreciation to the hardworking staff of the Ghana Statistical Service for their dedication and professionalism in compiling the monthly inflation data.

“If we all stay the course — producers, policymakers, and consumers — we can keep prices stable and strengthen our economy together,” he emphasized.

Story by: Joshua Kwabena Smith