Ghana’s inflation rate continued its impressive downward trajectory, easing for the tenth consecutive month to 8.0% year-on-year in October 2025, from 9.4% in September, the lowest level recorded since June 2021.
This development, announced by the Ghana Statistical Services (GSS) on Wednesday, demonstrates the country’s sustained progress in taming inflationary pressures that had surged during the global commodity and supply shocks of previous years.
The 140 basis-point decline not only exceeded market expectations but also marked a significant milestone in Ghana’s economic stabilization efforts.
The monthly data further revealed a deflationary trend, with prices falling by 0.4% month-on-month, compared to a 0.9% rise in September 2025.
Food costs on the easing path
According to the GSS report, the notable slowdown in food price growth was a key factor driving the overall disinflation.
Food inflation fell sharply to 9.5% year-on-year in October from 11.8% in September, supported by favourable base effects and increased food supply resulting from the ongoing harvest season.
Month-on-month, food prices declined by 1.0%, reversing the 0.6% uptick recorded the previous month.
The moderation was most pronounced in high-weight categories such as fish and other seafood, which eased to 12.4% year-on-year from 16.7%, and ready-made foods, which dropped to 12.4% from 14.1%.
An analysis carried out by Ghana-based Apakan Securities Limited says improved agricultural yields, stable market supply chains, and targeted government interventions in the food sector contributed to the overall price relief for consumers.
Non-food inflation also trended downward, with nearly all components in the category recording price declines.
Housing and utilities inflation slowed from 15.8% to 13.9%, while alcoholic beverages, tobacco and narcotics dropped sharply from 15.4% to 10.4%.
Clothing and footwear prices also declined, easing from 11.0% to 9.5%. Consequently, non-food inflation fell by 130 basis points to 6.9% year-on-year in October, with a marginal 0.04% month-on-month increase, compared to the 1.1% recorded in September.
More insights
The Bank of Ghana’s Monetary Policy Committee (MPC) will conclude its final policy deliberation for the year on Wednesday, November 26, 2025. In view of the sustained disinflation and subdued underlying price pressures, analysts expect the Committee to cut rates.
Ghana’s central bank currently targets an inflation rate of 8%, with a permissible margin of ±2 percentage points. This target aligns broadly with the International Monetary Fund’s (IMF) recommendations for maintaining a prudent and credible monetary policy framework.
In October, the IMF announced that it had reached a staff-level agreement with Ghanaian authorities on the fifth review of the country’s ongoing loan programme, signaling continued confidence in Ghana’s economic management and reform commitments.
In October, Nairametrics reported that Ghana’s consumer price inflation had dropped to single digits for the first time since August 2021.
