Ghana’s inflation rate has continued its steady downward trajectory, easing for the eleventh consecutive month to 6.3% in November, down from 8.0% recorded in October, according to newly released figures from the Ghana Statistical Service (GSS). The latest decline places inflation at its lowest level since the country’s consumer price index was rebased in 2021.
Speaking at a press briefing in Accra on Wednesday, Government Statistician, Professor Alhassan Iddrisu, attributed the sustained drop primarily to a slowdown in food inflation, which has long been the main driver of consumer price increases. He noted that both domestic and external market conditions were showing signs of stabilisation after a turbulent period marked by surging prices, currency depreciation and supply-side shocks.
“Domestic price conditions and external market conditions are both stabilising,” Prof. Iddrisu stated, emphasising that the economy is gradually emerging from what has been one of Ghana’s most severe economic crises in decades.
Ghana, a major exporter of gold, oil and cocoa, has spent the past two years implementing fiscal and monetary reforms to restore macroeconomic stability. The easing inflation trend has been supported by decisive policy actions from the Bank of Ghana (BoG), which has responded with significant monetary policy rate cuts to stimulate recovery.
The central bank has slashed its main policy rate by a cumulative 1,000 basis points over its last three Monetary Policy Committee (MPC) meetings. The most recent cut came last week, with the policy rate reduced by 350 basis points to 18%, following a similar cut in September and a 300-basis-point reduction in July. The BoG said the moves were justified by improving economic indicators and strong expectations that inflation would continue its downward trend.
The current inflation rate now sits comfortably within the Bank of Ghana’s target band of 8% ± 2 percentage points, marking a significant turnaround from the 23.8% rate recorded in December 2024. Analysts say the sustained easing strengthens the case for further policy normalisation in the months ahead if global conditions remain favourable and domestic supply chains continue to stabilise.
While challenges remain including volatile global commodity prices and structural constraints in the local economy, the latest figures point to renewed confidence in Ghana’s recovery efforts. Economists predict that if the trend continues, consumer purchasing power could improve further, supporting household welfare and broader economic growth.
Author: Edem Latsu Nukafu
Edem Latsu Nukafu, a passionate communications professional dedicated to public relations, journalism, media strategy, and content development. He holds both a Diploma and Bachelor of Arts Degree in Communication Studies (Public Relations) from the University of Media, Arts and Communication – UniMAC-IJ. A member of Ghana Journalists Association (GJA).
