Ghana: May sees inflation drop to lowest level in over three years
Latest reading: Inflation fell to 18.4% in May, down from April’s 21.2%. May’s reading marked the lowest inflation reading since February 2022. The slowdown was primarily due to a softer rise in prices for food, housing and utilities, and transport.
Annual average inflation fell to 21.9% in May (April: 22.3%).
Finally, seasonally adjusted consumer prices rose 0.72% in May, easing from April’s 0.80% increase.
Outlook: Our panelists see inflation cooling throughout 2025, with annual average inflation likely recording its lowest reading since 2021. The recent appreciation of the cedi—the world’s best-performing currency so far this year—amid growing gold reserves is set to cap price pressures further. However, our Consensus is for inflation to remain above the Central Bank’s 6–10% target range for the fourth consecutive year in 2025. Commodity price spikes and geopolitical tensions present upside risks.