Ghana Inflation Falls to 11.5%, Lowest in Four Years

Ghana's inflation rate declined for the eighth consecutive month in August 2025, dropping to 11.5%, the lowest since October 2021 and below the government's year-end target of 11.9%. The slowdown is attributed to easing pressures on both food and non-food prices, with food inflation decreasing to 14.8% and non-food inflation to 8.7%. Month-on-month, consumer prices fell by 1.3%, providing some relief to households. The stronger Ghanaian cedi and easing global cost pressures contributed to a sharper decline in imported inflation compared to locally produced items. Despite the national improvement, inflation remains uneven across regions, with the Upper West Region experiencing the highest rate and Bono Region the lowest. The sustained disinflationary trend has encouraged the central bank to cut its key interest rate by 300 basis points, signaling confidence in continued price stability and potential further reductions in borrowing costs.