Don’t exploit disinflation – Gov’t Statistician warns businesses
By Solomon Nartey Tetteh
Government Statistician, Dr. Alhassan Iddrisu, has urged businesses to show restraint in pricing decisions as Ghana’s inflation continues to decline steadily.
Speaking at a media briefing in Accra, Dr. Iddrisu warned against opportunistic pricing practices, stressing the need for fairness and transparency in the market.
“With disinflation underway, businesses must avoid sharp price hikes. Now is the time to build long-term customer trust through fair and transparent pricing,” he said.
Ghana recorded its fifth consecutive monthly drop in headline inflation, reaching 18.4 percent year-on-year in May 2025, down from 21.2 percent in April, the lowest level since February 2022. The decline is largely driven by lower transport costs, easing non-food inflation, and recent gains in the cedi’s performance.
Dr. Iddrisu urged businesses to source inputs locally, noting that domestic inflation is falling faster than imported inflation. This, he said, presents an opportunity to reduce production costs without raising prices.
He also encouraged companies to tailor pricing and distribution strategies based on regional inflation patterns. The Upper West Region, for instance, continues to experience the highest inflation in the country at 38.1 percent.
To help households cope, Dr. Iddrisu recommended cutting back on non-essential expenses such as restaurant dining and entertainment. He also advised the use of the National Health Insurance Scheme (NHIS) and a shift toward preventive healthcare, especially as health-related inflation stands at 20.1 percent.
He suggested practical strategies such as bulk buying, shared procurement, and reliance on local and seasonal produce to further ease spending, particularly as food inflation continues to account for nearly two-thirds of overall inflation.
Dr. Iddrisu further called for sustained macroeconomic stability, investment in post-harvest infrastructure and logistics, and the expansion of targeted social protection programmes. He also emphasized the need for strong coordination between the Ministry of Finance and the Bank of Ghana to monitor inflation risks and apply measured monetary interventions when necessary.
