Ghana’s inflation rate slowed to 8.0 percent year-on-year in October, down from 9.4 percent in September, marking the lowest level since mid-2021 and the tenth consecutive monthly decline, according to the Ghana Statistical Service.
The slowdown was largely driven by falling food and goods prices. On a month-to-month basis, consumer prices even dropped slightly by 0.4 percent, signaling a rare retreat in headline costs across multiple sectors.
Analysts suggest the trend could indicate more than just a pause in price increases, hinting that inflationary pressures may genuinely be easing. The sustained decline has been attributed to a stronger cedi, lower fuel prices, and improved domestic food supply.
Food inflation cooled to 9.5 percent from 11 percent, while non-food items slowed to 6.9 percent from 8.2 percent. Key contributors to the easing include cereals, vegetables, and cooking oils, likely boosted by seasonal harvests and better local production.
Goods inflation, which tracks tangible items like clothing, processed foods, and household appliances, fell to 9.3 percent, while services inflation—covering transport, housing, and education—slipped slightly to 4.6 percent.
This decline brings overall inflation into the Bank of Ghana’s target range of 8 percent, comfortably within its 6–10 percent tolerance band. The cedi’s rally—up nearly 35 percent this year thanks to strong cocoa and gold exports—has helped ease imported price pressures.
Data also revealed that domestically produced goods mirrored the national average at 8.0 percent year-on-year but fell 0.7 percent month-on-month, reflecting stabilising local supply chains. Imported items, however, recorded 7.8 percent inflation and rose slightly by 0.3 percent month-on-month, underscoring Ghana’s ongoing exposure to external price shocks.
Regional disparities remain stark. The North East Region experienced the country’s highest inflation at 17.3 percent, while Bono East recorded the lowest at just 1.1 percent. The divide highlights how transport costs, market access, and infrastructure gaps continue to shape price levels across urban and rural areas.
While the easing of inflation offers relief to consumers, experts warn that global uncertainties—from shipping disruptions in the Red Sea to fluctuating oil prices—could still reignite imported price pressures, potentially offsetting recent gains.
