Ghana’s consumer price inflation dropped to 9.4% in September 2025, slipping into single digits for the first time since August 2021. The milestone highlights a sustained disinflation trend that has now extended for nine straight months, according to the Ghana Statistical Service.
The latest reading is a sharp improvement from 11.5% in August, driven mainly by moderating food costs. Food inflation eased to 11% in September from 14.8% in the prior month, while non-food inflation also declined slightly to 8.2% from 8.7%.
The central bank responded decisively to the disinflation momentum, delivering a 350 basis point cut to its benchmark policy rate in September. The move lowered the rate from 25% to 21.5%, marking the second major reduction this year.
“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 Bank of Ghana had forecast that inflation would return to its 6%–10% target band by year-end, but September’s figures confirm the goal has already been met. The decline is expected to provide relief to households and businesses that have endured years of high prices and economic strain.
With inflation now below 10%, policymakers are seen striking a balance between stabilizing prices and stimulating credit growth. Analysts suggest the development could lift investor confidence, encourage private sector activity, and support stronger GDP performance in the months ahead.
Despite the positive inflation data, challenges remain, particularly in Ghana’s foreign exchange market. The cedi depreciated by 15% against the U.S. dollar in the third quarter, ranking as the second-worst global performer behind the Argentine peso.
The weakness has been attributed to seasonal dollar demand from companies settling import bills ahead of the holiday season. This pressure reduced Ghana’s foreign reserves to $10.7 billion by the end of August, down from $11.1 billion in June, raising concerns about external stability.
Economists argue that the return to single-digit inflation is a turning point that enhances prospects for monetary policy stability and exchange rate resilience. If fiscal discipline and supply-side reforms hold, Ghana’s recovery could strengthen further into 2026.
For now, the central bank is expected to maintain a cautious but supportive policy stance, ensuring inflation remains anchored while encouraging economic growth. The disinflation trend offers a rare window of optimism for a country that has battled global shocks and domestic imbalances in recent years.
