Month-on-month inflation also recorded a decline, easing to 1.3 per cent in August compared to 0.7 per cent in July.

The Government Statistician, Dr Alhassan Iddrisu, stated this in Ac­cra yesterday when he released the August 2025 Consumer Price Index (CPI), explaining that the steady drop was largely influenced by the moderation in food prices.

“Inflation for August 2025 stood at 11.5 per cent. This means that prices today are 11.5 per cent higher than they were in August 2024. Most importantly, it is the eighth consecutive month of decline and the lowest inflation since October 2021,” he stated.

According to Dr Iddrisu, food in­flation dropped slightly to 14.8 per cent in August from 15.1 per cent in July, contributing more than half of the overall inflation figure.

“Food remains the largest driver of inflation. For some time now, food has consistently accounted for more than half of national inflation. Once we are able to fix issues sur­rounding food prices, we can tackle inflation in Ghana more effectively,” he said.

Dr Iddrisu explained that on a month-to-month basis, food prices fell by 2.5 per cent between July and August, while non-food inflation also eased to 8.7 per cent, down from 9.5 per cent in July.

“Prices of non-food items reduced marginally by 0.1 per cent over the same period,” he added.

Dr Iddrisu said inflation for locally-produced items declined from 12.9 per cent to 12.2 per cent, while imported inflation fell from 10 per cent in July to 9.5 per cent in August.

He stated that regional disparities remained wide, with the Upper West Region recording the highest inflation of 21.8 per cent, though down from 24.8 per cent in July.

The Government Statistician said the Bono East Region registered the lowest at 6.1 per cent, a sharp fall from 10 per cent the previous month.

“All 16 regions recorded a decline in inflation between July and Au­gust. This shows some significant progress in easing price pressures across the country,” Dr Iddrisu noted.

On the sectoral front, he said food and non-alcoholic beverages contributed the most to infla­tion, followed by housing, water, electricity, gas and fuels. Transport, however, was a drag on inflation, contributing negatively by 0.5 per­centage points.

Dr Iddrisu stressed that the decline in inflation was partly supported by the appreciation of the cedi, strong fiscal consolidation measures, and easing global cost pressures.

“The steady drop in inflation is reassuring, but the monthly swings we are seeing remind us to remain vigilant. Policy must continue to ad­dress short-term fluctuations while consolidating the gains achieved so far,” Dr Iddrisu said.

He urged households to take advantage of easing prices to save more and shop smarter, while encouraging businesses to expand carefully in the relatively stable price environment.

For government, he advised maintaining fiscal discipline and strengthening domestic supply chains to sustain the downward momentum.

“This marks real progress to­wards price stability and provides a solid foundation for growth, jobs and investment,” Dr Iddrisu stated.

 BY KINGSLEY ASARE