Ghana’s annual inflation rate has continued its downward trend, reaching a new low since October 2021; marking the eighth consecutive month of slowing inflation, this is based on a report from the Ghana Statistical Service on Wednesday.
The annual consumer inflation rate in Ghana for August 2025 was 11.5%, a massive 43% year on year decrease from 20.4% recorded in August 2024.
This means that households and businesses are witnessing a huge relief, and the prices of goods and services in the gold-rich West African nation have stabilized drastically over the last one year.
On a month on month basis the the Consumer Price Index (CPI) of 11.5% recorded in August is a 1.3% decrease from 12.1% recorded in July 2025, and a significant shift from the 0.7% rise seen in July.
The decrease was observed across both major categories: Food inflation cooled to 14.8% in August, down from 15.1% in July.
Non-food price growth eased to 8.7% from 9.5% the previous month.
The Ghanaian cedi has experienced a 20% appreciation against the U.S dollar, making it the world’s best-performing currency this year. This has been attributed to a surge in the prices of gold and cocoa, major exports for the country.
Meanwhile, the Bank of Ghana’s monetary policy committee has been closely monitoring the situation. The continuous drop in inflation has bolstered the case for further interest rate cuts to ease financial strain on households and businesses. In the prior month, the Bank of Ghana had already cut its policy rate by 300 basis points to 25%.
Also, fiscal tightening measures have also played a role in stabilizing the economy and controlling price growth.
The August 2025 inflation rate of 11.5% is the lowest since October 2021, indicating a strong and consistent reversal of the high inflation rates that peaked July 2025: 12.1%; June 2025: 13.7%; May 2025: 18.4%.
