Falling Inflation Doesn’t Mean Prices Are Dropping – Prof. Quartey Explains

Introduction

Recent headlines have instructed that Ghana’s inflation is “falling,” main many readers to wonder if the price of on a regular basis items is if truth be told reducing. In a up to date PleasureNews Business Economic Forum look, Prof. Peter Quartey, a number one Ghanaian economist and Director of the Centre for Social and Economic Studies (CSS), clarified the honour between inflation easing and worth declines. This article breaks down the terminology, items the newest information from the Ghana Statistical Service (GSS), and provides sensible venture building for families seeking to interpret what “falling inflation” in point of fact manner for his or her price of residing and worth balance.

Key Points

Background

Who Is Prof. Peter Quartey?

Prof. Peter Quartey is a prominent Ghanaian economist, former Director of the Institute of Statistical, Social and Economic Research (ISSER), and lately the Director of the Legon Centre for Economic and International Development (LECIAD). His analysis specializes in macro‑financial balance, poverty research, and coverage analysis in Sub‑Saharan Africa.

Why Inflation Figures Matter

Inflation is a key indicator utilized by policymakers, traders, and the general public to gauge financial well being. In Ghana, the Ghana Statistical Service publishes each Consumer Price Index (CPI) and Producer Price Index (PPI) information. While CPI displays costs paid by means of shoppers, PPI tracks costs gained by means of manufacturers, providing an early sign of price pressures within the provide chain.

Analysis

Interpreting the November 2025 PPI Numbers

According to the GSS, the yr‑on‑yr PPI fell by means of 0.1 proportion level to one.3 % in November 2025. This modest decline alerts that the tempo of worth will increase for items on the manufacturing degree is slowing. However, a damaging month‑on‑month exchange of –1.9 % signifies that some manufacturers are if truth be told seeing decrease promoting costs when put next with the former month, an extraordinary prevalence that can replicate seasonal reductions or oversupply in particular sectors.

Sectoral Spotlight: Mining and Quarrying

The Mining and Quarrying technology, which accounts for 43.7 % of the PPI basket, demonstrated a pronounced shift: its manufacturer inflation rose from 0.7 % in October to two.3 % in November 2025. This 1.6‑proportion‑level build up means that uncooked subject matter prices are starting to climb once more, doubtlessly feeding into upper ultimate‑items costs downstream.

Household Perception vs. Statistical Reality

Prof. Quartey notes that “inflation doesn’t mean prices are not increasing; it tells us we are not increasing fast enough.” In sensible phrases, if a family’s meals basket is composed basically of things whose costs stay secure or upward thrust, the shopper would possibly not really feel any reduction regardless of the entire inflation slowdown. Conversely, if the basket contains commodities with noticeable worth drops – similar to sure staples or gas – the family might revel in a tangible growth in price of residing.

Stability in Food Prices

One encouraging signal highlighted by means of Prof. Quartey is the relative balance of meals costs in fresh months. While general inflation is easing, meals worth volatility has been restricted, contributing to a extra predictable worth setting for shoppers and investors alike.

Practical Advice

How to Interpret Inflation News

1. Check the time period: Distinguish between yr‑on‑yr, month‑on‑month, and core inflation figures.
2. Look at sectoral breakdowns: Identify which classes are using the craze.
3. Compare with your personal spending trend: If your common purchases belong to a technology with strong or falling costs, it’s possible you’ll certainly understand a discount in out‑of‑pocket prices.

Budgeting Strategies During a Slowing Inflation Phase

• Prioritise bulk buying of things that experience proven worth balance, similar to rice, maize flour, and cooking oil.
• Monitor native enterprise development worth studies for brief‑time period reductions, particularly on perishable items.
• Consider hedging towards long run worth spikes by means of locking in longer‑time period contracts for top‑frequency purchases.

When to Expect Real Price Reductions

True worth declines in most cases happen when the financial environment reports deflationary pressures – for instance, a sustained oversupply of a commodity or a vital relief in manufacturing prices. Until such stipulations materialise, probably the most sensible expectation is a slowdown in worth innovation moderately than an outright drop.

FAQ

Conclusion

In abstract, the new falling inflation charge reported by means of Ghana’s Ghana Statistical Service signifies that costs are nonetheless mountain climbing, however at a slower tempo than ahead of. Prof. Peter Quartey reminds Ghanaians that this doesn’t routinely translate into decrease enterprise development costs for on a regular basis pieces. The actual affect on a family’s price of residing will depend on the particular composition of its intake basket and the sectoral dynamics of the financial environment. While some sectors, like meals, have proven relative worth balance, others – similar to mining and quarrying – are experiencing worth will increase that can offset general inflation good points. Understanding those nuances is helping shoppers make knowledgeable monetary selections and units sensible expectancies for when authentic worth discounts would possibly happen.

Sources

• Ghana Statistical Service (GSS). Producer Price Index – November 2025. https://www.statsghana.gov.gh
• Prof. Peter Quartey, Director, LECIAD & former ISSER boss. PleasureNews Business Economic Forum interview, December 2025.
• Ministry of Finance, Ghana. Economic Outlook Report – This fall 2025.
• World Bank. Ghana Economic Update – November 2025.