In recent months, Ghana’s economic story has been presented as one of recovery. Government officials and policymakers continue to point to falling inflation and a stabilising cedi as signs that the economy is improving.
According to the Ghana Statistical Service, inflation peaked at 54.1% in December 2022, dropped to 23.2% in December 2023, and declined further to about 13 to 15% by early 2025 based on official Consumer Price Index data.
Government leaders have consistently highlighted this progress. In the 2024 Budget Statement in November 2023, former Finance Minister Ken Ofori-Atta said inflation was expected to decline steadily. In 2024, Finance Minister Mohammed Amin Adam also stated that inflation was being brought under control.
More recently, President John Dramani Mahama has also pointed to improving economic indicators. In a media engagement in September 2025, he noted that inflation had dropped from about 23% in late 2024 to around 11 to 12% by mid 2025, describing it as a sign of stability.
The Bank of Ghana has similarly maintained that inflation is easing and the cedi is more stable, based on its Monetary Policy Committee reports throughout 2025.
But life on the ground tells a different story. For many ordinary Ghanaians, the reality does not match the statistics.
The key issue is simple. Falling inflation does not mean prices are going down. It only means prices are rising more slowly.
Data from the Ghana Statistical Service shows that although inflation has declined, the overall price level remains significantly higher than it was before the economic crisis.
Food prices remain high
A clear example is food. According to the Ministry of Food and Agriculture Ghana, a 50 kilogram bag of imported rice that sold for about GHS 280 to 350 in 2020 to 2021 rose to about GHS 500 to 650 by 2024 to 2025.
The Food and Agriculture Organization also reported in its 2023 to 2024 global food outlook that food prices remain high in many developing countries, including Ghana.
As a result, many households are now buying smaller quantities and cutting down on essential food items just to cope.
Transport and rent remain under pressure
Transport fares also reflect the same pattern. Between 2022 and 2024, fares increased by about 40% to 70% according to public announcements by the Ghana Private Road Transport Union. Even in 2025, fares have largely remained high despite relative fuel price stability.
In major cities such as Accra, transport alone can take up to 20% or more of a low-income worker’s earnings.
Housing is also a major concern. The Ghana Real Estate Developers Association has reported a housing deficit of over 1.8 million units between 2023 and 2024, which continues to push rent prices upward and keep housing out of reach for many families.
Income has not kept pace
The Trades Union Congress Ghana has warned in 2024 and 2025 that workers’ real incomes have fallen, with purchasing power dropping by around 10% or more due to earlier inflationary pressures.
In simple terms, people are earning almost the same but spending much more.
This explains why many Ghanaians do not feel any real relief despite improved macroeconomic figures.
There is also growing public frustration.
An Afrobarometer survey released in 2024, Round 9 conducted between 2022 and 2023, found that about 66% of Ghanaians said the country was heading in the wrong direction, with the cost of living ranked as the top concern.
Similarly, discussions on radio and TV stations such as Joy FM and Citi FM throughout 2024 and 2025 consistently show callers expressing concern about high prices, transport costs, and general economic hardship.
To be fair, the Bank of Ghana and government have taken steps to stabilise the economy through monetary and fiscal reforms. Ghana is clearly recovering from one of its most difficult economic periods.
But recovery cannot only be measured in numbers. It must be felt in daily life.
Government has already started work in areas such as agriculture support, social protection, and housing. However, these efforts may need to be strengthened, better coordinated, and expanded so their impact is more visible to ordinary citizens.
Reducing the cost of living remains key. Supporting local farmers more effectively can help reduce food prices over time. Reviewing fuel related taxes and working closely with transport unions can ease pressure on fares. Gradual wage adjustments that reflect real living costs can also help workers cope better.
Expanding social protection programmes like LEAP and school feeding can offer more direct relief to vulnerable households. Increasing affordable housing supply through stronger partnerships with private developers can also reduce rent pressure over time.
In the end, the question remains simple.
What is the value of a stable cedi if it does not improve people’s daily lives?
What does lower inflation mean if families still struggle to afford food, transport, rent, and basic needs?
For many Ghanaians, the reality is clear. The economy may be improving on paper, but in everyday life, the pressure is still there.
Until economic progress translates into real improvements in living conditions, recovery will continue to feel more like an illusion than a reality.
By Collins Adjei Kuffuor – Social Commentator, UK
