Ghana’s consumer price inflation has dropped to single digits for the first time since August 2021, marking a significant milestone in the country’s economic recovery.
The year-on-year inflation rate eased to 9.4% in September 2025, down from 11.5% in August, extending a nine-month streak of declines, according to the Ghana Statistical Service.
The drop was largely driven by a sharp moderation in food prices, with food inflation falling to 11% in September from 14.8% the previous month. Non-food inflation also edged lower, easing to 8.2% from 8.7% in August.
The sustained decline has already surpassed the government’s full-year inflation target, offering relief to households and businesses that have endured prolonged price pressures.
Bank of Ghana Cuts Policy Rate Amid Disinflation Momentum
The Bank of Ghana had earlier projected that inflation would enter its target band of 6% to 10% before year-end, a forecast now validated by the latest figures.
In response to the disinflation trend, the central bank’s Monetary Policy Committee (MPC) announced a 350 basis point cut to the benchmark policy rate in September, lowering it from 25% to 21.5%.
“This marks the second major rate cut in 2025,” said Dr. Johnson Asiama, Governor of the Bank of Ghana.
“The decision reflects a sustained decline in inflationary pressures and the expectation of continued fiscal consolidation.”
The rate cut is part of broader efforts to stimulate credit growth and support Ghana’s ongoing economic recovery.
Outlook Brightens as Inflation Eases and Confidence Builds
The return to single-digit inflation strengthens prospects for monetary policy stability, exchange rate resilience, and improved consumer confidence heading into the final quarter of the year. Analysts say the trend could pave the way for increased investment and stronger economic performance, especially if fiscal discipline and supply-side reforms continue.
With inflation now below 10%, Ghana’s central bank is expected to maintain a cautious but supportive stance, balancing price stability with growth objectives. The development marks a turning point for the economy, which has faced significant headwinds in recent years due to global shocks and domestic imbalances.
What You Should Know
- As earlier reported, the recent depreciation of the Ghanaian cedi has introduced new challenges.
- The currency fell by 15% against the U.S. dollar in the third quarter, making it the second-worst performer globally among those tracked by Bloomberg, behind only the Argentine peso. Despite this quarterly decline, the cedi remains up 20% year-to-date.
- The depreciation has been largely attributed to increased demand for foreign exchange by companies settling import bills ahead of the year-end holiday season. This surge in dollar demand has placed pressure on Ghana’s foreign reserves, which declined to $10.7 billion at the end of August, down from $11.1 billion in June.
