- Headline inflation declined for the 12th consecutive month
- Food items make up 42.7% of Ghana’s CPI basket
- Ginger, plantain, and charcoal recorded the highest price increases
Food prices dominated Ghana’s inflation dynamics in December 2025, as the country posted a 12th straight decline in headline inflation, largely driven by easing pressures within the food component.
Data from the Ghana Statistical Service (GSS) show that food inflation dropped significantly to 4.9 per cent in December from 6.6 per cent in November, making it the largest contributor to the overall deceleration in inflation.
Food and non-alcoholic beverages carry a weight of 42.7 per cent in the Consumer Price Index (CPI), meaning movements in food prices play a decisive role in shaping overall inflation trends.
Sharp increases in selected food items
Despite the general slowdown, several widely consumed food items recorded steep year-on-year price increases, continuing to strain household budgets.
Ginger posted the highest annual inflation rate at 76.7 per cent, making it the fastest-rising item in the CPI food basket. This was followed by green plantain, a key staple, which rose by 69.4 per cent, while charcoal—commonly used for cooking—recorded a 66.8 per cent increase.
Declines offset inflation pressures
At the same time, price declines in certain food categories helped moderate overall food inflation. These reductions had a notable dampening effect, particularly as the affected items are staples in everyday meals. Improved supply conditions, favourable harvests, and seasonal price adjustments likely contributed to the sharp drops.
Month-on-month pressures remain
On a month-on-month basis, food prices still rose by 1.1 per cent between November and December 2025, indicating that short-term inflationary pressures persist.
Items such as onions, yam, and fish recorded monthly price increases, reflecting seasonal demand patterns, transportation costs, and ongoing distribution challenges.
What the data reveal
December’s inflation data suggest that Ghana’s disinflation is uneven across food categories. Rather than a broad-based decline, inflation is increasingly driven by item-specific movements, with falling vegetable prices offsetting sharp increases in plantain, charcoal, and spices.
This trend points to the need for targeted policy responses, rather than blanket price controls, to address persistent price pressures in specific food segments.
Why it matters
For households, lower food inflation offers some relief, but elevated prices for key staples mean cost-of-living pressures remain. For policymakers, the figures underscore the importance of investments in food storage, transportation, irrigation, and market access—especially for items that continue to fuel inflation despite the broader slowdown.
As Ghana completes a full year of declining inflation, the December CPI release reinforces a central reality: inflation outcomes will continue to be shaped, item by item, by developments in food prices at both the market and household levels.
