Ghana has reached a major economic milestone after recording an 8 percent inflation rate in October 2025 — the lowest level since June 2021.

This development marks ten consecutive months of declining inflation, signaling renewed stability in the country’s economy after years of sharp price hikes and exchange rate turbulence.

According to the Ghana Statistical Service (GSS), the drop represents a 1.4 percentage point reduction from the 9.4 percent recorded in September.

It is also a remarkable turnaround from the peak of 23.8 percent in December 2024, which had severely eroded household purchasing power and driven up the cost of living nationwide.

At a press briefing in Accra on Wednesday, November 5, Government Statistician Dr. Iddrisu Alhassan described the achievement as a significant economic recovery milestone.

“For the first time since June 2021, Ghana has achieved single-digit inflation. This means the rate at which prices of goods and services are increasing has slowed significantly,” Dr. Alhassan stated.

He credited the continued success to monetary and fiscal stabilization measures pursued by government institutions, particularly the Bank of Ghana and the Ministry of Finance.

“We’ve seen improvements across key categories such as food, transport, and housing—indicators that directly affect household welfare,” he added.

Food Prices Remain Key Drivers of Inflation

Despite the general slowdown, food prices remain a major contributor to the inflation basket.

The GSS revealed that traditional Ghanaian meals such as fufu and soup and kenkey with fried fish were among the top 20 items driving inflation for October 2025.

Other significant contributors included smoked herrings, green plantain, charcoal, ginger, tomato paste, vegetable oil, cooked rice, beef, cassava-based foods such as kokonte and dough, and onions.

Non-food items like electricity, hotel accommodation, and secondary school fees also featured prominently in the inflation contributors list.

Dr. Alhassan explained that although food inflation has been slowing, its relative weight in the consumer basket means it continues to exert strong influence on overall inflation trends.

“Food inflation remains the most sensitive area of household spending, particularly for low- and middle-income families,” he said.

A Recovery from the Inflation Crisis

The inflationary crisis peaked in late 2022 and persisted through much of 2023 and 2024, driven by high fuel prices, currency depreciation, and global supply chain disruptions.

The cedi’s rapid depreciation, coupled with increased import costs, placed heavy pressure on businesses and consumers alike.

To address the crisis, the government introduced several stabilization measures, including tighter monetary policy, expenditure controls, and targeted social support.

The Bank of Ghana maintained a strict monetary policy stance while engaging in foreign exchange interventions to stabilize the cedi.