Ghana Inflation Drops to 8.0% in October 2025

Ghana’s inflation rate has significantly dropped to 8.0% in October 2025, down from 9.4% in September. This marks the tenth consecutive monthly decline and is the lowest rate recorded since June 2021, bringing it within the Bank of Ghana’s target range of 6-10%. The Ghana Statistical Service (GSS) reported this on November 5, 2025.

Key Details of October 2025 Inflation

• Overall Rate: 8.0%
• Monthly Change: A 1.4 percentage point decrease from September 2025. The month-on-month inflation rate also fell by 0.4%.
• Food Inflation: Eased to 9.5% from 11.0% in September, remaining the largest contributor to overall inflation.
• Non-Food Inflation: Decreased to 6.9% from 8.2% in September.
• Locally Produced Items: Inflation for these items slowed to 8.0% from 10.1%.
• Imported Inflation: Saw a slight uptick to 7.8% from 7.4%.
• Regional Disparities: Significant variations were observed, with the North East Region recording the highest at 17.3% and the Bono East Region the lowest at 1.1%.
• Driving Factors: The sustained decline is attributed to efforts in strengthening the cedi, reduced import costs, improved food supply following a strong harvest season, exchange rate stability, and fiscal consolidation measures. The Bank of Ghana’s recent reduction of its policy rate to 21% has also contributed to this trend.

Historical Perspective

Ghana has a volatile history with inflation, averaging 27.0% annually from 1965 to 2024.

• The highest recorded rates were 122.9% in 1983 and 63.10% in March 2001.
• Recent annual figures show a peak in 2023 at 38.11%, dropping to 22.85% in 2024.
• The achievement of 8.0% in October 2025 represents the first single-digit inflation since June 2021.

Current Opinions and Economic Impact

Economists generally view the return to single-digit inflation as a positive development, signaling improved investor confidence and enhanced consumer purchasing power. However, they caution that maintaining this trend will require ongoing fiscal discipline, stable exchange rates, and favorable global commodity prices. The Bank of Ghana’s decision to cut its policy rate reflects optimism about the disinflationary trends.

Future Developments and Economic Outlook for 2025

Despite the current positive trend, projections for Ghana’s inflation rate by the end of 2025 vary among international bodies:

• IMF: Projects 12% by year-end 2025, further declining to 9.4% in 2026.
• World Bank: Forecasts 15.4% inflation for 2025.
• African Development Bank Group: Expects 11.1% in 2025, remaining outside the Bank of Ghana’s target.
• Trading Economics: Projects around 7.00% by Q4 2025, trending to 9.00% in 2026 and 8.00% in 2027.

These forecasts largely predate the official October 2025 figure of 8.0%, suggesting a more optimistic trajectory than some initial assessments.

GDP Growth for 2025: Projections for GDP growth in 2025 are generally positive, ranging from 3.9% (World Bank) to 4.3% (African Development Bank Group) and 4% (IMF), aligning closely with the Ghanaian government’s target of 4.4%.