Ghana Inflation Falls To 9.4% First Single-Digit Rate Since 2021

Ghana's annual consumer inflation rate fell to 9.4% in September 2025, marking the first time in four years that inflation dropped below double digits and reflecting a nine-month streak of declines. This significant reduction was mainly driven by easing food prices, with food inflation decreasing from 14.8% to 11%, and non-food inflation also declining. The drop in inflation aligns with a 350-basis-point cut in the Bank of Ghana's policy rate to 21.5%, which has begun to lower the Ghana Reference Rate to 17.86%, thereby reducing borrowing costs for businesses and consumers. Despite the positive national trend, regional disparities remain pronounced, with inflation as high as 20.1% in some areas and as low as 1.2% in others, influenced by factors such as food supply chain issues and transport costs. The decline in inflation and borrowing costs is expected to stimulate economic activity by easing the financial burden on households and small businesses, potentially encouraging investment, hiring, and expansion. However, analysts caution that sustained progress depends on continued fiscal discipline, supply-side reforms, and improvements in food and transport logistics to maintain price stability and economic growth.