Prices in Ghana are still rising, even as inflation continues to decline. That’s according to economist and University of Ghana Business School lecturer, Professor Patrick Asuming, who cautions Ghanaians not to mistake improved inflation figures for a drop in the cost of living.
Speaking on PM Express Business Edition on JoyNews, Prof. Asuming stressed that while the inflation rate has slowed, prices remain on an upward trend.
“Prices are still rising. They haven’t declined,” he said. “The rate of increase has gone down, but that doesn’t mean things are getting cheaper.”
His comments follow a drop in the Producer Price Index (PPI) from 18% to about 10%. While this seems positive, he explained it only means prices are going up more slowly, not reversing.
He pointed to factors such as rising utility tariffs and increasing production costs as key reasons prices continue to climb. “Tariffs are going up, wages are not going down, and local production costs are still rising,” he noted.
Prof. Asuming also mentioned that the recent strengthening of the cedi and improvements in macroeconomic indicators haven’t translated into meaningful relief for ordinary Ghanaians. “Yes, the currency has strengthened. But when you look at the broader cost structure, it’s clear prices won’t be falling anytime soon.”
He highlighted a growing disconnect between Ghana’s financial recovery and the reality facing citizens. “The financial and monetary side of the economy is improving, but the real side—the part people feel daily, is lagging behind,” he explained.
The economist praised the government for stabilizing fiscal indicators, such as foreign reserves and Treasury bill rates, which were helped by better global prices for Ghana’s exports. However, he urged caution.
“First-quarter GDP exceeded expectations, but when you dig into the numbers, five sub-sectors actually declined,” he said. “The headline number hides some real weaknesses.”
Prof. Asuming concluded by warning against reading too much into macroeconomic data. “There’s a gap between how people experience the economy and what the numbers suggest. Falling inflation doesn’t mean falling prices, and the average Ghanaian still feels the pressure.”
