Food Inflation Falls to 4.9% — Mahama Credits Feed Ghana Programme for Economic Relief

President John Dramani Mahama has announced a significant decline in Ghana’s food inflation rate, crediting the government’s flagship Feed Ghana Programme under the Agriculture for Economic Transformation Agenda for helping to deliver economic relief to households and businesses.

Addressing Parliament during the State of the Nation Address, President Mahama disclosed that food inflation, which reached an unprecedented peak of 61% in January 2023 and stood at 28.3% in January 2025, has now dropped sharply to 4.9%, marking a major turnaround in the country’s food security and macroeconomic stability efforts.

“Agriculture remains central to our national renewal. Since January 2025, this administration has embarked on a decisive reset of Ghana’s agricultural sector under our Agriculture for Economic Transformation Agenda, with the Feed Ghana Programme serving as a flagship vehicle for implementation,” President Mahama stated.

He explained that the government’s policy direction is focused on restoring food sovereignty, stabilizing food prices, reducing import dependency, and creating decent employment opportunities, particularly for Ghana’s youth population.

“Our objective is clear — to restore food sovereignty, stabilize food prices, reduce import dependence, and reposition agriculture as a strategic growth sector under our 24-hour economy policy,” the President added.

The President noted that the dramatic fall in food inflation has provided much-needed relief to Ghanaian families and businesses, helping to ease cost-of-living pressures that had previously threatened household welfare and economic stability.

“The decline in food inflation is providing real relief to Ghanaian families and businesses who have endured severe economic pressure over the past years. This is evidence that our agricultural transformation policies are working,” he said.

As part of measures to sustain the gains, President Mahama announced a GH¢300 million investment in the National Food Buffer Stock Company to strengthen national food reserves and stabilize market prices during periods of supply shocks.

“This year, we have committed GH¢300 million to the National Food Buffer Stock Company to mop up excess produce, stabilize prices, and build a strategic national food buffer against emergencies. This is the first time Ghana has deliberately built a food reserve for national resilience,” he said.

He explained that the buffer stock initiative is designed to protect both farmers and consumers by preventing seasonal price volatility and ensuring consistent market supply.

The President further emphasized that agriculture will remain a cornerstone of Ghana’s broader economic strategy under the 24-hour economy policy, which seeks to expand industrial production, agro-processing, and export competitiveness.

“We are repositioning agriculture as a strategic engine of growth, employment, and industrial transformation. The 24-hour economy policy will unlock new value chains and create sustainable opportunities for our young people,” he said.

Government officials and economic analysts have welcomed the decline in food inflation, describing it as a positive sign of economic recovery and policy effectiveness. However, they cautioned that sustained investment in agricultural productivity, irrigation infrastructure, and farmer support systems will be necessary to maintain long-term price stability.

The government has reiterated its commitment to deepening agricultural modernization, expanding access to farm inputs, and strengthening rural development programs to ensure continued food security and economic growth.