Ghana’s consumer price inflation rate decelerated sharply to 6.3% year-on-year in November 2025, according to the Ghana Statistical Service.1 This marks the eleventh consecutive month of decline and represents the lowest inflation rate since the country’s rebasing exercise in 2021.
The significant drop from 8.0% in October brings Ghana’s inflation rate not only within the Bank of Ghana’s medium-term target band of 3$8\% \pm 2\%$ (6%–10%) but closer to the lower boundary, signaling a successful, broad-based economic recovery from its recent crisis.
Key Drivers Behind the Disinflation
The sustained fall in the headline inflation rate is attributed to a successful combination of tight domestic policies and favorable external market conditions.5
1. Slowdown in Food Prices
The primary factor driving the significant disinflation was a broad slowdown in food inflation.
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Food Inflation Eased: The food and non-alcoholic beverages inflation rate eased sharply to 6.6% in November, down from 9.5% in October.
Key Subgroups: This decline was most pronounced in categories such as vegetables, tubers, fish, and fruits, which had previously driven up household budgets.
2. Currency Strength and External Conditions
The Ghanaian cedi’s strong performance throughout 2025 played a critical role in controlling imported inflation.
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Cedi Appreciation: A substantial rally in the cedi’s value (supported by high gold and cocoa prices) against the U.S. dollar sharply reduced the cost of imported goods, easing pressure on consumer prices.
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Imported Inflation: As a result, inflation for imported items dropped significantly to 5.0% in November, down from 11$7.8\%$ in October.
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Global Stability: Stabilizing external market conditions, including moderating global oil prices and improved trade terms, further supported the domestic disinflationary trend.
3. Monetary and Fiscal Discipline
The sustained decline is also a direct result of coordinated policy efforts:
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Bank of Ghana (BoG) Policy: The Bank of Ghana’s commitment to a tight Inflation Targeting (IT) framework and multiple interest rate cuts throughout the year (as inflation moderated) helped to anchor inflation expectations.
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Fiscal Consolidation: The government’s ongoing implementation of fiscal consolidation measures under its IMF-supported recovery program has restored investor confidence and stabilized the macroeconomic framework.
Economic Implications
The inflation figure has profound implications for the Ghanaian economy and its future policy direction:
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Interest Rate Easing: With inflation well within the target band, the BoG is expected to have sufficient flexibility to continue easing its Monetary Policy Rate (MPR), encouraging more lending to the private sector and supporting economic growth.
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Improved Real Returns: The disinflation trend improves the real rate of return on investments, making Ghanaian assets more attractive to both domestic and international investors.
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Structural Stability: The slowdown is broad-based, affecting both locally produced and imported goods, suggesting that the trend is structural and sustainable, reinforcing Ghana’s path out of its severe economic crisis.
