Ghana’s service sector inflation showed signs of easing in March 2025, though persistent spikes in transport and food costs continue to strain household budgets, according to the latest data from the Ghana Statistical Service (GSS).
The Service Producer Price Index (S-PPI) recorded a 7.2% annual inflation rate for March, down from February’s 7.8%, signaling tempered price pressures in some areas. However, critical sectors affecting daily life defied the broader cooling trend, underscoring lingering economic challenges.
The transport and storage sub-sector remained a focal point, with inflation hitting 20.4% year-on-year. Land transport costs alone surged 21.7%, reflecting ongoing volatility in fuel prices and supply chain disruptions. While this marked a slight decline from February’s 22.7%, analysts attribute the stubbornly high rates to fluctuating global oil markets and domestic logistics inefficiencies.
Fuel prices saw mixed trends in April 2025, with petrol initially rising 2% to GH¢15.20 per litre before dropping 1.5% to GH¢14.88 by mid-month. Diesel and liquefied petroleum gas (LPG) followed similar, albeit less pronounced, patterns.
Accommodation and food services offered a glimmer of relief, with inflation plummeting from 29.1% to 22.6% month-on-month. Despite this drop, costs for dining out and hotel stays remained steep, with food and beverage services recording 20.0% inflation and accommodation activities at 23.1%. The partial easing suggests improved supply chain dynamics or moderated demand, though affordability hurdles persist for many families.
In contrast, the information and communication sub-sector emerged as a rare stable zone, posting a modest 4.1% inflation rate. Telecommunications prices held steady, while computer programming costs edged down to 1.2%, likely buoyed by competitive digital markets and regulatory oversight. This stability highlights the growing role of technology in mitigating broader economic pressures.
The uneven inflation landscape underscores structural vulnerabilities in Ghana’s economy, where global commodity shifts and domestic infrastructure gaps disproportionately impact essential services. While the central bank’s monetary policies have helped stabilize some sectors, policymakers face mounting calls to address transport logistics and food distribution bottlenecks.
Previous efforts to streamline port operations and invest in agricultural storage facilities have seen limited success, leaving households and businesses exposed to recurrent price shocks. As investigations into the Redco Flats fire earlier this month renew scrutiny on urban safety, parallel demands for economic resilience measures are likely to intensify.
