ACCRA— Ghana’s inflation slowed sharply in August 2025, hitting its lowest level in four years and reinforcing optimism that the government’s stabilization program is taking hold.
Data released on September 3 by the Ghana Statistical Service showed year-on-year inflation at 11.5% in August, down from 12.1% in July. This marks the eighth straight month of decline and brings inflation below the government’s 11.9% year-end target ahead of schedule.
The moderation was broad-based. Food inflation eased to 14.8% from 15.1%, while non-food inflation slipped to 8.7% from 9.5%. Food prices remain the single largest contributor, but the trend signals softening pressures across categories.
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Several factors underpinned the disinflation:
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A stronger cedi, which has gained over 20% against the U.S. dollar this year, lowering import costs.
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High global prices for gold and cocoa, boosting foreign inflows and stabilizing reserves.
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Tighter monetary policy, including aggressive rate hikes earlier this year, anchoring expectations.
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Improved local food supply from better weather and government farm interventions.
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Fiscal discipline, as the government curbed spending to restore balance.
The decline has fueled speculation that the Bank of Ghana could deliver another policy rate cut after a record 300-basis-point reduction to 25% in July. Analysts suggest single-digit inflation is possible by year-end if trends hold, paving the way for an economic rebound and renewed investor confidence.
Still, officials caution that risks remain. “The downward trajectory is encouraging, but global commodity volatility and domestic supply shocks could alter the outlook,” said Government Statistician Alhassan Iddrisu.
For now, the numbers provide the clearest sign yet that Ghana may be emerging from one of its harshest inflationary crises in decades.
Source: Accra Street Journal
Last Updated on March 9, 2026 by Samuel Kwame Boadu
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Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.
