By: ThinkBusiness Africa
Ghana’s consumer inflation slowed to 5.4% year-on-year in December, down sharply from the 6.3% recorded in November, marking the twelfth consecutive month of disinflation, and positioning the West African gold exporter firmly within its central bank’s medium-term stability band. Ghana Statistical Service (GSS) said on Wednesday.
The December figure, which is the lowest since June 2021, is seen as a significant victory for the government and the Bank of Ghana (BoG)’s rigorous macroeconomic stabilization program, which is supported by its development partner, the International Monetary Fund (IMF).
Ghana’s inflation peak 23.5% in January, and has since been on a downward trajectory.
Source: BoG
The latest Headline inflation (5.4%) not only beat market expectations but also fell comfortably within Ghana’s central bank target range of 6%-10%. A dramatic reversal from over 54% peaked in late 2022.
Food inflation, which was the primary driver of the crisis, eased to 6.6% in November and continued its descent into December.
The central bank’s aggressive policy stance earlier in the year successfully ‘mopped up’ excess liquidity, allowing for a series of rate cuts in late 2025 as the outlook improved.
In November, BoG monetary committee members slashed its benchmark Monetary Policy Rate (MPR) by an aggressive 350 basis points (bps) to 18.0%. After delivering over 3 rate cuts earlier this year.
Since July 2025, the committee members have reduced the MPR by a cumulative 1,000 basis points, a decision they said was primarily driven by the sustained and sharp decline in consumer inflation; unwinding a period of historically high rates used to combat the surging inflation of previous years.
The Ghana Cedi has shown significant resilience appreciating over 20% against the US Dollar throughout 2025, largely due to strong performance in key export sectors like gold and cocoa, coupled with restored international confidence. stronger cedi has lowered the cost of imported goods, easing imported inflation pressure.
