Ghana’s inflation rate has continued to fall for the fifth month in a row, with the latest figure standing at 18.4 percent in May 2025. This is the lowest level the West African country has recorded since February 2022. The Ghana Statistical Service announced the new data on Wednesday, saying the drop was due to various government policies and positive economic conditions.
In April 2025, Ghana’s inflation rate was 21.2 percent, meaning the country has now experienced a steady decline in consumer prices over the last few months. The report was presented by the Government Statistician, Dr Alhassan Iddrisu, who explained that the falling inflation is a result of a combination of monetary policies, fiscal discipline, and improvements in the foreign exchange market. According to him, the Ghanaian cedi has become more stable in recent months, which has helped reduce the cost of imported goods and ease general price pressures.
Dr Iddrisu said the decline in non-food inflation played a big role in the overall reduction in the Consumer Price Index. He also mentioned that while food prices are still high, they did not increase as sharply as in previous months. He noted that the government’s plan to support local food production is beginning to have some positive impact, even though food inflation remains a concern for many households.
Despite this improvement, inflation is still far above the Bank of Ghana’s official target range of 6 to 10 percent. As a result, the Bank of Ghana decided to maintain its main policy rate at 28.0 percent. This was confirmed by the Governor of the central bank, Dr Ernest Addison, who said the current interest rate is needed to make sure inflation continues to fall and does not rise again. He added that the central bank will remain cautious until inflation returns to a more comfortable level.
Ghana’s Finance Minister, Dr Cassiel Ato Forson, also reacted to the latest inflation figures. He said the government will continue to tighten its spending to help reduce inflation further. According to him, the goal is to bring inflation down to around 11.9 percent by the end of 2025. Dr Forson said cutting government expenditure and focusing on targeted investments will help maintain economic stability and restore confidence in Ghana’s economy.
Ghana has been struggling with economic challenges since the COVID-19 pandemic and the Russia-Ukraine war, which affected food and fuel imports. In addition, problems in the cocoa and gold sectors, which are major sources of foreign exchange for the country, made the situation worse. These issues led to a rise in public debt, high inflation, and currency depreciation. In 2023, Ghana reached a bailout deal with the International Monetary Fund (IMF), and since then, it has been implementing tough reforms to turn the economy around.
Analysts say the drop in inflation is a positive sign that Ghana’s economy is on the path to recovery. However, they warn that rising global oil prices, climate-related shocks, and political uncertainty could still threaten the progress. The business community in Ghana has welcomed the news, saying lower inflation will improve the cost of doing business and help boost investor confidence.
The Ghanaian government has promised to continue supporting local industries, especially in agriculture, mining, and manufacturing, to strengthen its production base and reduce dependence on imports. Authorities also plan to increase support for small and medium enterprises and expand infrastructure investments to create jobs and grow the economy.
As Ghana continues to deal with the effects of recent economic shocks, the government says it will keep working with development partners and the private sector to ensure long-term growth and stability.
