Ghana’s consumer price inflation has dropped to single digits for the first time since August 2021, marking a major milestone in the country’s economic recovery.
The year-on-year inflation rate eased to 9.4 percent in September 2025, down from 11.5 percent 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 percent in September from 14.8 percent the previous month. Non-food inflation also declined, easing to 8.2 percent from 8.7 percent 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. The Bank of Ghana had earlier projected that inflation would fall within its target band of 6 to 10 percent before year-end, a forecast now validated by the latest figures.
In response to the disinflation trend, the central bank’s Monetary Policy Committee cut its benchmark policy rate by 350 basis points in September, reducing it from 25 percent to 21.5 percent. Governor Dr. Johnson Asiama said the decision reflected a sustained easing of inflationary pressures and the expectation of continued fiscal consolidation. It was the second major rate cut of 2025 and part of wider efforts to stimulate credit growth and support economic recovery.
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 attract investment and reinforce Ghana’s growth outlook, especially if fiscal discipline and structural reforms are maintained.
However, challenges remain. The Ghanaian cedi depreciated by 15 percent against the U.S. dollar in the third quarter, making it the second-worst performer globally among currencies tracked by Bloomberg, behind only the Argentine peso. Despite this quarterly slump, the cedi remains up 20 percent year-to-date. The decline has been attributed to increased demand for foreign exchange from companies settling import bills ahead of the holiday season, a trend that has pressured foreign reserves, which fell to $10.7 billion at the end of August from $11.1 billion in June.
With inflation now below 10 percent, Ghana’s central bank is expected to maintain a cautious but supportive stance, balancing price stability with growth objectives as the economy turns a corner after years of global and domestic headwinds.
