Ghana’s annual inflation rate eased to 9.4 percent in September, dipping into single digits for the first time in four years. According to new data from the Ghana Statistical Service (GSS), the milestone extends a nine-month stretch of declining price pressures and signals progress in the country’s fragile recovery.
Government Statistician Dr. Alhassan Idrissu described the outcome as significant but cautioned against complacency. Inflation fell from 11.5 percent in August and is far below the 23.8 percent recorded in December last year. “This is the lowest rate in four years and the ninth consecutive month of decline,” he noted.
Food costs were the major driver of the slowdown, with food inflation dropping to 11 percent in September from 14.8 percent the previous month. Non-food inflation also eased to 8.2 percent, while inflation for goods and services fell to 11.2 percent and 4.8 percent respectively. Still, rising costs in housing, utilities, and transport continue to pressure household budgets.
The trend has been supported by a stronger cedi, which has gained more than 20 percent against the US dollar this year. Analysts attribute the rebound to higher cocoa and gold export revenues, better investor sentiment, and tighter fiscal discipline under the IMF-backed reform programme. The currency recovery has helped ease import costs, even as local supply challenges persist.
In July, the Bank of Ghana cut its policy rate by 300 basis points to 25 percent — its boldest move in history. Governor Johnson Asiama said the decision reflected growing confidence in the disinflation path, although further cuts will depend on continued progress.
Regional disparities remain a concern, with the North East recording the highest inflation in September at 20.1 percent, while Bono East posted just 1.2 percent. Economists warn that uneven food supply, climate shocks, and global commodity volatility could undermine stability. Fiscal risks, including debt servicing and wage pressures, also add uncertainty.
Finance Minister Cassiel Ato Forson had earlier expressed confidence that the year-end inflation target of 11.9 percent would be achieved ahead of schedule. With September’s figure already below that threshold, the target has been surpassed. However, scars from Ghana’s recent economic crisis remain evident in high living costs and strained public services.
For households and businesses, the steady decline offers much-needed relief. Yet experts caution that sustaining this progress will require discipline, careful policy management, and resilience against external shocks. As Dr. Idrissu summed up, “Ghana is making real progress, but sustaining it will require effort from all of us.”
