Ghana’s annual inflation rate fell to 11.5% in August, the lowest level since 2021, as sustained price pressures continued easing for the eighth consecutive month.
The Ghana Statistical Service reported the decline from July’s 12.1% rate, with both food and non-food categories contributing to the downward trajectory that has provided gradual relief to consumers and businesses facing cost-of-living pressures.
Month-on-month prices actually decreased by 1.3% between July and August, indicating immediate price relief rather than merely slower growth, according to Government Statistician Dr. Alhassan Iddrisu.
Food inflation, historically a major driver of Ghana’s price increases, moderated to 14.8% from 15.1% the previous month. Non-food inflation showed more significant improvement, dropping to 8.7% from July’s 9.5% rate.
The data revealed continued disparities between locally produced and imported goods, with domestic products recording 12.2% inflation compared to 9.5% for imports. Both categories showed improvement from July levels of 12.9% and 10.0% respectively.
Regional variations remained pronounced across Ghana’s economic landscape. The Upper West Region registered the highest inflation at 21.8%, despite falling from July’s 24.8% rate, while the Bono Region recorded the nation’s lowest at 6.1%.
The sustained downward trend positions Ghana’s inflation closer to the Bank of Ghana’s medium-term target range, though the 11.5% rate still exceeds the central bank’s preferred 6-10% corridor established for monetary policy guidance.
Economic analysts suggest the consistent decline could create space for potential interest rate adjustments if the trajectory continues, potentially reducing borrowing costs for businesses and consumers. Lower inflation typically supports increased purchasing power and can enhance investor confidence in Ghana’s economic stability.
The improvement comes as Ghana continues implementing economic reforms under its International Monetary Fund program, which has emphasized fiscal consolidation and monetary policy discipline to address macroeconomic imbalances.
However, the significant regional disparities, particularly the Upper West’s 21.8% rate, highlight ongoing structural challenges in Ghana’s economy that require targeted policy interventions beyond monetary measures.
