Ghana Gains Ground on Inflation, Central Bank Shows Confidence
Ghana’s annual inflation eased for the eighth consecutive month in August, reaching its lowest level since October 2021, according to data released on Wednesday by the Ghana Statistical Service.
Government statistician Alhassan Iddrisu said both food and non-food prices fell last month, although food prices remain the single largest driver of inflation.
“The steady drop in inflation is reassuring, but the monthly swings we are seeing remind us that we need to keep watch on inflation, particularly short-term movements,” Iddrisu told reporters in Accra.
The West African nation, a leading producer of gold, oil, and cocoa, is gradually recovering from its worst economic crisis in decades. The local cedi currency has gained more than 20% against the U.S. dollar so far this year, providing some relief to households and businesses hit hard by previous rounds of depreciation.
The slowdown has been reinforced by monetary policy shifts. In July, the Bank of Ghana cut its benchmark interest rate by 300 basis points to 25% — the largest reduction in its history. Policymakers said the move reflected growing confidence that inflationary pressures were easing and would continue to moderate.
Finance Minister Cassiel Ato Forson also struck an optimistic tone last month, saying officials were hopeful of hitting the government’s year-end inflation target of 11.9% ahead of schedule.
The extended decline in inflation offers a boost to President Nana Akufo-Addo’s government as it works to stabilise the economy under an International Monetary Fund (IMF) support programme. However, analysts caution that sustained progress will depend on external factors, including global commodity prices and exchange rate stability.
