Prof. Peter Quartey, an economist, says Ghana’s declining inflation rate should not be interpreted as a fall in prices, but rather a slowdown in how fast prices are rising.
He clarified the JoyNews Business Economic Forum, urging the public to understand the difference between easing inflation and actual reductions in the cost of living.
Latest figures from the Ghana Statistical Service (GSS) show that the year-on-year PPI for November 2025 declined by 0.1 percentage point, from 1.4 per cent in October 2025 to 1.3 per cent.
On a month-on-month basis, producer inflation between October and November 2025 recorded a negative rate of 1.9 per cent.
This means that, on average, the ex-factory prices of goods and services increased by 1.3 per cent between November 2024 and November 2025.
In October 2025, producer inflation stood at 1.4 percent while sectoral data show mixed movements.
For instance, the Mining and Quarrying sector, which carries the largest weight of 43.7 per cent, recorded an increase in producer inflation from 0.7 per cent in October 2025 to 2.3 per cent in November 2025, a rise of 1.6 percentage points.
According to the LECIAD Director and former ISSER boss, many households still feel pressure because the goods they consume daily may not be experiencing significant price drops, even though inflation is trending downward.
“Inflation doesn’t mean prices are not increasing,” he said. “What it tells you is that we are not increasing fast enough, but they are not increasing at the rate they used to be.”
Prof. Quartey explained that the impact of falling inflation varies depending on the items in a person’s consumption basket. “If the kind of goods and services you consume sees a price decline, then you see that you are benefiting,” he noted.
“But if your own food basket doesn’t see a significant drop in prices, then you’re likely to say, ‘I’m not feeling it in my pocket.’”
The economist, however, insisted that the economy is experiencing some measure of stability, especially in food prices, which he said have been “relatively stable” in recent months.
He stressed that while Ghanaians may still be dissatisfied with the cost of living, some improvements are visible.
“Overall, I’ll be surprised to hear that we don’t feel it at all. We do feel it — not significantly or not at the level we expect,” he said.
Prof. Quartey added that the public naturally desires lower prices across the board — from food to interest rates to rent — and the current stability should be seen as part of a gradual process toward economic recovery.
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