Regional Inflation Gaps Highlight Uneven Economic Strain

Regional Inflation Gaps Highlight Uneven Economic Strain

Regional Inflation Gaps Highlight Uneven Economic Strain—–Ghana‘s latest Consumer Price Index (CPI) for March 2025 reveals a year-on-year inflation rate of 22.4%, but the figures mask stark regional differences that underscore the uneven economic pressures faced by consumers. The CPI climbed to 256.5 in March 2025 from 209.5 a year earlier, highlighting significant disparities in the cost-of-living increases across the country.

The Upper West region experienced the steepest price surge, with an inflation rate of 36.2%, driven largely by significant hikes in food and essential goods. Conversely, the Volta region recorded a much lower rate of 18.9%, indicating a relatively milder inflationary environment.

In February, the Upper West region’s inflation was 35.5% while the Volta region was 18.1%, a gap of 17.4 percentage points. In March, Upper West increased to 36.2% and Volta region to 18.9%, making the gap 17.3 percentage points.

The pronounced regional divergence underscores the need for tailored economic policies. While the overall month-on-month inflation remains modest at 0.2%, the data suggest that targeted interventions are essential to mitigate the adverse impacts of rising prices, particularly in the most affected areas. Addressing these disparities will be crucial in safeguarding household budgets and ensuring a more balanced economic recovery across all regions.

Last Updated on April 3, 2025 by Senel Media

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