Falling Food and Non-Food Prices Drive Ghana’s Inflation to Its Lowest Level in Over a Year

Overview

Ghana’s headline inflation fell sharply to 8.0% in October 2025, down from 9.4% in September, marking the lowest inflation level in more than a year. The latest data released by the Ghana Statistical Service (GSS) indicates a steady moderation in consumer prices, largely driven by significant declines in both food and non-food inflation.

The report by Accra Street Journal signals renewed optimism for Ghana’s economy as slowing price pressures provide relief for households and businesses, while also offering policymakers room to sustain measures that support economic stability.

Broad-Based Decline in Prices

The Consumer Price Index (CPI) data shows that both food and non-food components contributed to the easing inflation trend.

• Food inflation dropped to 9.5% in October, down from 11.0% in September.

• Non-food inflation followed a similar pattern, falling to 6.9% from 8.2% the previous month.

This dual decline underscores a broad-based easing in price pressures, with notable reductions in costs of essential commodities, including cereals, vegetables, oils, and beverages.

Month-on-month analysis also revealed mild deflation, with consumer prices decreasing by 0.4%, compared to a 0.9% increase in September. This shift indicates that the average price of goods and services fell slightly in October, a development rarely seen during the post-harvest season in Ghana.

Food Prices: The Main Driver

Food prices have historically been a key driver of Ghana’s inflation trends, accounting for more than 40% of the CPI basket. In October, easing food costs played a pivotal role in the overall inflation slowdown.

According to GSS data, price declines were recorded in plantain, yam, smoked herrings, maize, and cooking oil — staples that have seen sharp increases in previous quarters. Market watchers attribute this moderation to improved domestic food supply, favourable weather conditions, and reduced transportation costs following stable fuel prices.

The Ghana Statistical Service also noted that the availability of imported food products and better harvest yields contributed to easing price pressures in urban and rural markets.

Non-Food Inflation Sees Similar Relief

Non-food inflation fell from 8.2% to 6.9%, reflecting reduced costs in categories such as housing, utilities, transport, and recreation. This suggests that the impact of earlier price hikes in electricity, rent, and fuel may be tapering off.

The moderation in transport inflation, especially, was linked to stable petroleum prices and improved exchange rate stability — factors that have significantly influenced domestic pricing over the past two years.

Locally Produced vs Imported Goods

Interestingly, inflation for locally produced items dropped to 8.0% from 10.1%, while prices of imported goods eased marginally to 7.8% from 7.4%. This pattern indicates a steady improvement in local production costs and supply chain efficiency, despite global uncertainties.

Economists believe this signals growing resilience in Ghana’s domestic production sector, as businesses adapt to previous shocks from exchange rate volatility, logistics challenges, and global price swings.

Regional Inflation Patterns

The October report also highlighted regional disparities in inflation across Ghana.

• Bono East Region recorded the highest inflation rate at 17.3%, reflecting persistent cost pressures in transportation and food items.

• In contrast, the North East Region posted the lowest inflation rate at just 1.1%, marking one of the lowest regional inflation readings in recent history.

These differences underscore ongoing challenges in regional supply chains and market accessibility, particularly in areas with weaker infrastructure or higher dependency on imported goods.

Relief for Consumers and Businesses

The fall in inflation offers significant relief to both households and enterprises. For ordinary Ghanaians, this means greater purchasing power, especially for essential goods like food and fuel.

For businesses, the decline signals lower input costs, improved pricing stability, and renewed consumer confidence. Manufacturers and retailers are likely to experience more predictable market conditions as inflationary pressures ease.

Policy Implications for the Bank of Ghana

The Bank of Ghana (BoG), which has maintained a cautious but accommodative monetary policy stance throughout 2025, is expected to view the latest inflation data as a positive sign.

With inflation now comfortably within the BoG’s medium-term target range of 6–10%, analysts suggest that policymakers may keep the Monetary Policy Rate (MPR) steady to sustain economic recovery while closely monitoring external risks.

A continued disinflation trend could also provide scope for the central bank to gradually reduce interest rates in early 2026, easing credit conditions for businesses and consumers.

Outlook: Stability, but Risks Remain

While the October data suggests growing price stability, economists caution that certain upside risks remain.

Volatility in global commodity prices, particularly crude oil and grains, could reintroduce inflationary pressures. Similarly, domestic energy costs and potential exchange rate fluctuations during the festive season might influence short-term price movements.

Nonetheless, most analysts agree that Ghana’s inflation outlook remains positive, supported by improved food supply, fiscal discipline, and stabilizing macroeconomic indicators.

Expert Commentary

Speaking to Accra Street Journal, market analyst Kofi Agyeman noted that the sustained drop in inflation could boost investor confidence and attract more portfolio inflows.

“An inflation rate of 8.0% is a signal that Ghana’s price stability is back on track. It provides the Bank of Ghana with breathing room to maintain supportive monetary policies, which could encourage business expansion and credit growth,” he said.

He added that maintaining discipline in government spending and managing exchange rate pressures will be crucial to sustaining the gains made so far.

Conclusion From ASJ

Ghana’s October 2025 inflation report offers encouraging news for policymakers, investors, and consumers alike. With prices easing across both food and non-food sectors, the economy appears to be entering a phase of sustained stability after months of volatility.

While global uncertainties remain, Ghana’s progress toward a single-digit inflation rate highlights the country’s resilience and growing economic maturity.

As the nation moves into the final quarter of 2025, businesses and consumers alike can look forward to a period of greater price predictability, which could spur investment, enhance living standards, and support Ghana’s long-term growth ambitions.

FAQs

1. What caused Ghana’s inflation to fall in October 2025?
The decline was mainly due to lower food and non-food prices, improved supply chains, and stable fuel and exchange rates.

2. Which region recorded the highest inflation?
The Bono East Region had the highest inflation rate at 17.3%, while the North East Region recorded the lowest at 1.1%.

3. How does this affect ordinary Ghanaians?
Lower inflation means slower price increases for goods and services, improving purchasing power and household affordability.

4. What does this mean for businesses?
Businesses benefit from lower production costs and price stability, allowing for better planning and expansion opportunities.

5. Could inflation rise again soon?
Yes, potential risks include global commodity price fluctuations, energy cost changes, and exchange rate instability.

Source: Accra Street Journal

Last Updated on March 9, 2026 by Samuel Kwame Boadu

Samuel Kwame Boadu

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.

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