Ghana’s inflation rate has declined for the 11th consecutive month, reaching its lowest level in nearly seven years, with annual inflation dropping to 6.3% in November.
This was disclosed by Government Statistician Alhassan Iddrisu while speaking to journalists on Wednesday in Accra.
Nairametrics previously reported that Ghana’s inflation rate eased for the tenth consecutive month to 8.0% year-on-year in October 2025, from 9.4% in September.
Further contributing to the downward trend, food inflation eased significantly to 6.6% in November, compared with 9.5% recorded the previous month.
Similarly, non-food inflation moderated to 6.1%, down from 6.9% in October, reflecting broad-based price stability across key consumer categories.
Analysts say the latest data may create room for the Bank of Ghana to consider another interest rate cut.
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Analysts attribute the sustained decline largely to the strengthening of the Ghanaian cedi, powered by rising global prices of cocoa and gold.
As the world’s second-largest cocoa producer and Africa’s leading gold producer, Ghana has benefited from increased export revenues, easing pressure on its currency and lowering import-related inflationary pressures.
With inflation now well below the level seen at the start of the year, the latest data offers renewed optimism for households, businesses, and policymakers.
It also opens a potential window for the central bank to consider lowering interest rates—an action that could stimulate borrowing, investment, and economic activity as Ghana seeks to consolidate its recovery.
Economists will be watching keenly to see how the Bank of Ghana responds in its next monetary policy meeting, especially as global economic conditions and domestic fiscal pressures continue to evolve.
What you should know
In November, the Bank of Ghana announced a reduction in its benchmark interest rate, lowering it by 350 basis points to 18%, the third consecutive cut, as inflation continues its rapid decline and economic conditions improve.
“The prevailing high real interest rates provided some scope to ease monetary policy to further boost the growth recovery efforts,” the Governor of the Bank of Ghana, Johnson Asiama said.
“The bank projects a continued stable inflation profile around the target and well into the first half of 2026,” he added.
Finance Minister Cassiel Ato Forson, in his recent budget presentation, reaffirmed the government’s commitment to fiscal consolidation as the country prepares to exit its International Monetary Fund (IMF) programme.
He projected a primary budget surplus of 1.5% of GDP by 2026, with Ghana’s overall fiscal deficit expected to narrow from a projected 2.8% in 2025 to 2.2% in 2026. The government also forecasts economic growth of at least 4.8% in 2026, up from an estimated 4% this year.
