Prices in Ghana are still rising despite a consistent decline in inflation, according to economist Professor Patrick Asuming.

Speaking on JoyNews’ PM Express Business Edition on Thursday, June 19, Prof. Asuming warned Ghanaians not to misinterpret the country’s improving inflation data as a sign that the cost of living is actually dropping.

“We still have to understand that prices are climbing. Prices are still rising. They haven’t declined,” he said emphatically.

“There is a rate of price increase that has reduced, but that doesn’t mean prices are coming down.”

Prof. Asuming’s caution comes as the Producer Price Index (PPI) dropped from around 18 per cent to about 10 per cent.

While that might sound like good news, he stressed that it simply means prices are increasing at a slower pace, not that they’re reversing.

He attributed the persistent rise in prices to multiple factors beyond inflation, including rising utility tariffs and high domestic production costs.

“You know, these tariffs keep going up, and it’s a big element of the cost,” he explained. “Wages are not coming down. The domestic cost of production in the country is rising.”

According to Prof. Asuming, even a stronger cedi and improvements in macroeconomic indicators have not translated into relief for the average Ghanaian.

“The currency has strengthened, yes,” he acknowledged. “But when you put all of that together, we begin to see why perhaps prices are not going to… we shouldn’t expect that the decline in inflation means prices are coming down anytime soon.”

He also pointed out a disconnect between the country’s financial performance and the reality in homes and markets.

“It seems to me that the financial and monetary side of the economy has performed better. The real side seems to be lagging.”

The economist said the government has done well to stabilise some financial indicators, with evidence in falling Treasury Bill rates and stronger foreign reserves.

These, he explained, were supported by positive policy direction and some global tailwinds like better prices for Ghana’s export commodities.

But even with those gains, he cautioned against being too optimistic.

“We have to understand that even though the first quarter GDP performed beyond expectation, there are still lingering weaknesses,” he said.

“If you break down the numbers… five sub-sectors actually saw a decline, though the weightier sub-sectors grew strongly.”

This, he explained, gives the appearance of strong overall growth while masking underlying economic pain.

“The financial indicators are moving forward much better than the real side. And that tends to give you a disconnect between how people are perceiving the economy and the macro numbers they are seeing.”

Prof. Asuming’s comments offer a sobering reminder that economic recovery on paper does not always mean relief in the streets—and that falling inflation does not necessarily mean falling prices.