Ghana’s inflation hits 8.0% in October lowest in over four years

By: Chidozie Nwali

Ghana’s annual consumer price inflation (CPI) rate has dropped to 8.0% year-on-year in October 2025, down from 9.4% in September, according to figures released by the Ghana Statistical Service (GSS) on Wednesday.

This milestone marks the tenth consecutive month of slowing price growth and represents the lowest inflation level recorded since June 2021, a period of over four years. Crucially, the rate is now within the  central bank of Ghana’s medium-term target of 8%, which operates within a tolerance band of 6–10%.

The sustained decline in inflation since the beginning of the year—which peaked at a much higher rate in late 2024—is seen as a powerful signal that the government’s fiscal consolidation efforts, coupled with the Bank of Ghana’s tighter monetary policy, are yielding intended results.

The achievement of the central bank’s target band is a major boost to the country’s economic credibility, particularly in the context of its ongoing programme with the International Monetary Fund (IMF).

In October,  IMF and Ghanaian authorities reached a Staff-Level Agreement on the fifth review of Ghana’s three-year Extended Credit Facility (ECF) program.

About US$385 million will be disbursed once the agreement receives approval from the IMF Management and Executive Board.

The disinflation in October was largely broad-based, with significant moderation recorded in both the food and non-food categories:

• Food Inflation: Eased further to 9.5% in October, down from 11.0% in September. This sharp fall in food price pressures is a key factor providing relief to the average Ghanaian consumer.
•  Non-Food Inflation saw a decline, although more modest, easing to an estimated 8.2% from 8.7% in the previous month. This group includes essential components like housing, utilities, and transport.

In September, The Bank of Ghana (BOG) slashed its key interest rate by a record 350 basis points from 25% to 21.5%, citing a sustained decline in inflation and an improving macroeconomic outlook.

The latest inflation data strengthens the argument for a potential further easing of the monetary policy stance in the coming months, which would aim to stimulate private sector credit growth and broader economic activity.