Economist Prof. Peter Quartey has explained that Ghana’s declining inflation rate does not mean that prices are falling.
Rather, it means that prices are still rising, but at a slower pace than before.
He urged the public to clearly understand the difference between slowing inflation and an actual reduction in the cost of living.
According to the latest data from the Ghana Statistical Service (GSS), the year-on-year Producer Price Inflation (PPI) for November 2025 fell slightly by 0.1 percentage point, from 1.4 percent in October 2025 to 1.3 percent.
On a month-on-month basis, producer inflation recorded a negative rate of 1.9 percent between October and November 2025.
This indicates that, on average, ex-factory prices of goods and services increased by 1.3 percent between November 2024 and November 2025.
In October 2025, producer inflation stood at 1.4 percent, with sectoral data showing mixed trends.
For example, the Mining and Quarrying sector which has the highest weight of 43.7 percent saw producer inflation rise from 0.7 percent in October 2025 to 2.3 percent in November 2025, representing an increase of 1.6 percentage points.
Prof. Quartey, who is the Director of LECIAD and a former Director of ISSER, noted that many households still feel financial pressure because the prices of everyday goods they consume have not dropped significantly, despite the decline in inflation.
“Inflation does not mean prices are no longer rising, it simply means prices are not rising as fast as they used to,” he explained.
He added that the impact of easing inflation depends largely on the items in an individual’s consumption basket. “If the goods and services you consume experience price reductions, then you will feel some relief,” he said.
“But if prices in your food basket remain high, you are likely to feel that nothing has changed.”
Nonetheless, Prof. Quartey maintained that the economy is showing signs of stability, particularly in food prices, which he described as relatively stable in recent months.
While acknowledging that many Ghanaians remain unhappy with the high cost of living, he said there are modest signs of improvement.
“Overall, I would be surprised to hear that people are not feeling any impact at all, we do feel some relief, though not significantly or at the level people expect,” he noted.
He concluded by saying that while Ghanaians understandably want lower prices across all areas, including food, interest rates, and rent, the current stability should be viewed as part of a gradual path toward economic recovery
