In a welcome sign of economic relief, Ghana’s annual inflation rate continued its downward trajectory for the eighth straight month in August, dipping to 11.5% from 12.1% in July. This marks the lowest inflation level since October 2021, according to the Ghana Statistical Service.
Government Statistician Alhassan Iddrisu attributed the decline to easing prices across both food and non-food categories. However, food prices remain the dominant driver of inflation, indicating that households still feel pressure from staple costs.
A strong cedi, which has gained over 20% against the U.S. dollar this year, has also aided disinflationary efforts. Bolstering market confidence, Ghana’s central bank executed a landmark 300 basis-point cut in its key interest rate, bringing it down to 25%. Finance Minister Cassiel Ato Forson expressed optimism, suggesting Ghana might surpass its year-end goal of 11.9% inflation ahead of schedule.
