Fitch Solutions is projecting inflation to average 18.8% year-on-year over 2025, and end the year at 13.6%.

This will nudge back down towards the pre-pandemic average of 12.4% year-on-year over 2015-2019.

“While Ghanaian inflation will follow a more stable and cooling path over 2025, it has started 2025 relatively sticky, coming in at 23.5% year-on-year in January. This is an acceleration from the 2024 low of 20.3% year-on-year in August 2024. Despite the slight reacceleration, inflation will continue to broadly come down and is supporting improving households purchasing power, particularly when considering inflation hit a peak of 54.1% in December 2022”, it stated in a report titled “Ghana 2025 Consumer Outlook: Growth Moves Up As Stronger Tailwinds Emerge”.

It added that the reacceleration of food inflation over quarter 4, 2024, and into 2025 is posing some concern for households over the short term.

Given that food and non-alcoholic drinks account for more than 42% of total household spending in Ghana, it pointed out that sticky prices will remain somewhat of a drag on spending and will see households retain a focus on essentials.

“Key household spending segments, such as housing and utilities as well as transport prices are however beginning to come down and are settling following the upward revision of water and electricity tariffs in July 2024”, it stated.

As inflation across the three segments settle over 2025, it alluded that households will see their purchasing power improve and demand for more non-essential segments begin to improve.