Ghana Achieves First Single-Digit Inflation in Over Four Years at 9.4%
Ghana’s inflation rate has dropped to 9.4 percent in September 2025, marking the country’s first return to single-digit inflation in more than four years, according to figures released by the Ghana Statistical Service (GSS).
The new rate represents a decline from 11.5 percent in August and is the lowest level since August 2021. It also marks the ninth consecutive month of disinflation, offering a significant boost to economic stability at a time when the country continues to consolidate gains from its ongoing reforms.
Government Statistician Dr. Alhassan Iddrisu attributed the decline mainly to falling food prices, improved currency stability, and favourable base effects. “This marks a continuation of the disinflation process which began late last year, with both food and non-food components contributing to the slowdown,” he said.
Food inflation fell sharply to 11.0 percent, down from 14.8 percent in August, while non-food inflation eased to 8.2 percent from 8.7 percent. The trend was also supported by easing external price pressures. Imported inflation dropped from 9.5 percent to 7.4 percent, while inflation for locally produced items fell to 10.1 percent from 12.2 percent.
Despite the headline improvements, the GSS noted that price pressures remain at the monthly level. Month-on-month inflation rose slightly to 0.9 percent in September from 0.8 percent in August, suggesting that some underlying risks still persist in the system.
The data also showed wide regional disparities. The North East region recorded the highest rate at 20.1 percent, more than double the national average, while Bono East registered the lowest at just 1.2 percent.
The Bank of Ghana has already responded to the trend with a significant policy adjustment. In September, the central bank’s Monetary Policy Committee cut the policy rate by 350 basis points, lowering it from 25 percent to 21.5 percent. The move was described as a reflection of strengthening confidence in the economy and the central bank’s belief that inflation will settle firmly within its medium-term target band of 8 ± 2 percent by the final quarter of 2025.
Economists say the sharp decline in inflation offers breathing space for households and businesses, while also easing pressure on government borrowing costs. However, they caution that risks such as potential upward adjustments in utility tariffs, volatility in global commodity prices, and exchange rate pressures could slow or reverse the disinflation trend if not carefully managed.
The return to single-digit inflation is being viewed as a symbolic milestone for the economy, particularly after the country endured more than three years of double-digit price growth that peaked at over 50 percent in early 2023. Analysts argue that the priority now must be to sustain price stability while balancing growth, fiscal discipline, and structural reforms.
Source: B&FT
