Ghana has achieved a major economic milestone with consumer price inflation dropping to single digits for the first time since August 2021. Official data from the Ghana Statistical Service (GSS) shows that 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 disinflation.
The decline was largely driven by a sharp fall in food prices. Food inflation dropped to 11% in September, compared to 14.8% in August, while non-food inflation eased slightly to 8.2% from 8.7%.
The development comes as a relief to households and businesses that have endured years of elevated price pressures. It also means Ghana has surpassed the government’s full-year inflation target well ahead of schedule.
The Bank of Ghana, which had projected that inflation would return to its target band of 6–10% by year-end, confirmed the achievement with optimism. On the back of this progress, the Monetary Policy Committee (MPC) slashed the benchmark policy rate by 350 basis points in September, bringing it down from 25% to 21.5%.
“This marks the second major rate cut in 2025,” Governor of the Bank of Ghana, Dr. Johnson Asiama, said. “The decision reflects a sustained decline in inflationary pressures and the expectation of continued fiscal consolidation. It is also designed to stimulate credit expansion and reinforce Ghana’s economic recovery.”
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Economists believe the return to single-digit inflation strengthens the country’s macroeconomic outlook. Improved price stability is expected to boost consumer confidence, enhance exchange rate resilience, and attract new investment.
Financial analyst Dr. Efua Osei noted that the policy shift “gives Ghana room to balance growth with stability, but fiscal discipline must remain central.” She cautioned that without continued reforms, recent gains could be undermined by external shocks or domestic fiscal slippages.
Despite the positive inflation trend, challenges remain. The Ghanaian cedi weakened by 15% against the U.S. dollar in the third quarter, making it the second-worst performing currency globally after the Argentine peso, according to Bloomberg data. Still, on a year-to-date basis, the cedi remains up 20%.
Analysts attribute the quarterly depreciation to a surge in dollar demand from businesses settling import bills ahead of the holiday season. This has also placed pressure on foreign reserves, which fell to $10.7 billion in August from $11.1 billion in June.
Even with currency pressures, the outlook is cautiously optimistic. Economists say Ghana’s ability to sustain single-digit inflation, while managing exchange rate volatility, will be crucial to building durable investor confidence and ensuring that the current recovery translates into inclusive growth.
