A falling inflation rate doesn’t mean that prices of goods and services have gone down drastically. A falling inflation means that prices of goods and services are rising at a slower pace than before.
Official data from the Ghana Statistical Service(GSS) indicate that, the Consumer Price Index(CPI) rose from 229.4 in August 2024 to 255.7 in August 2025. In practical terms, this means that households are spending GHS 26.30 more on the same basket of goods and services than they did in 2024.
For example, in August 2024, a family spent GHS 50 per week on food under 19.1% food inflation but in August 2025, the same basket of food costs around GHS 56 under 14.8% food inflation.
Yes, food inflation slowed but the family is still worse off because prices never revert to old levels. For instance, Kenkey that climbed from GHS 2 to GHS 5 under 19.1% food inflation has not dropped back to GHS 2 simply because food inflation has lowered to 14.8%.
In response to Hon. Eric Opoku, Food has rather become extremely expensive in 2025, and the facts are as follows:
- Gari rose from GHS 12 in 2020 to GHS 25 in 2025.
- A bag of maize rose from GHS 150 in 2020 to GHS 400 in 2025
The illusion of “lower food inflation of 14.8%” has several explanations including:
- Base Effects
Prices were already abnormally high in 2024. Comparing 2025 against 2024 inflated base makes the rate look smaller even though prices remain high.
- Imported versus Local Goods
IMF-backed currency stability has made imported rice and wheat slightly cheaper.
Conclusion
The Food Inflation debate favours the New Patriotic Party(NPP) because:
- CPI at 229.4 in August 2024 proves that prices of food were at record low and stable under NPP even though Food Inflation was 19.1%.
A lower Consumer Price Index(CPI) indicates:
(a). increasing purchasing power of money
(b). lower cost of living
(c). falling prices for goods and services.
- CPI at 255.7 in August 2025 proves that prices of food are at record high under NDC even though Food Inflation is at 14.8%.
A higher Consumer Price Index(CPI) indicates:
(a). reduced purchasing power of money
(b). higher cost of living
(d). increasing prices for goods and services.
True relief will come only when:
- Prices stabilize or fall
- Incomes rise to match living costs
- Social protection cushions the most vulnerable in society.
Until then, celebrating “lower inflation” is premature at best, and misleading at worst.
…. Signed….
Razak Kojo Opoku
Founding President of UP Tradition Institute
