Ghana’s year-on-year consumer inflation rate dropped sharply to 9.4 percent in September 2025, the lowest level since August 2021, according to the Ghana Statistical Service (GSS). This marks the ninth consecutive monthly decline in inflation, falling from 11.5 percent in August.
The decline was largely driven by easing food prices. Food inflation fell to 11.0 percent in September from 14.8 percent in August, while non-food inflation also edged lower from 8.7 percent to 8.2 percent.
Government Statistician, Dr. Alhassan Iddrisu, speaking at a press briefing, said the data showed a clear turning point in the country’s price stability. “We are witnessing a sustained shift in prices, with both food and non-food categories showing consistent declines. This is a sign that Ghana is firmly on the path to macroeconomic stability,” he noted.
The GSS also broke down the figures by the origin of goods. Inflation for locally produced goods declined to 10.1 percent from 12.2 percent, while inflation for imported goods eased more sharply to 7.4 percent from 9.5 percent.
Across the regions, inflation remained uneven. The North East Region recorded the highest rate at 20.1 percent, more than twice the national average, while the Bono East Region posted the lowest at 1.2 percent.
In response to the sustained decline, the Bank of Ghana in September cut its policy rate by 350 basis points, bringing it down to 21.5 percent. A central bank statement explained, “The consistent downward path of inflation provides scope to ease monetary policy to support growth, while maintaining vigilance to keep inflation within target.”
Analysts also see the trend as positive for the economy. “The return to single-digit inflation after four years is a critical milestone and should boost investor confidence,” one economic observer remarked. The Bank of Ghana and economists expect headline inflation to fall into the medium-term target band of around 8 percent, plus or minus 2 percent, by the fourth quarter of 2025.
By Bawa Musah
Leave a Comment