Keypoints:
- Inflation falls for sixth month to 13.7 percent
- Food and non-food prices ease sharply
- Cedi strength supports imported goods
GHANA’S annual inflation rate dropped to 13.7 percent in June, the lowest level in two and a half years, as easing food prices and a stronger cedi continued to stabilise the economy, according to the Ghana Statistical Service (GSS).
The new figure, announced by Government Statistician Alhassan Iddrisu during the GSS’s monthly briefing on Wednesday, marks the sixth consecutive monthly decline in year-on-year inflation.
‘This is the lowest since December 2021, and a clear sign that the policies introduced to strengthen the economy are beginning to yield results,’ Iddrisu said.
Food inflation sees sharp decline
The easing trend was driven largely by food and non-food inflation. Food inflation dropped from 22.8 percent in May to 16.3 percent in June — a fall of 6.5 percentage points. Non-food inflation also dipped, declining by 3 percentage points to 11.4 percent.
The GSS noted that price growth for both locally produced and imported items was also moderating. Inflation for domestic goods stood at 14 percent, while imported items registered 12.5 percent.
‘The consistently slower rates of inflation we are seeing show that the underlying pressures are easing. It is a clear signal of price stability and short-term price easing,’ Iddrisu added.
Cedi appreciation supporting stability
One of the key drivers behind the improvement has been the remarkable appreciation of the Ghanaian cedi. IMF, the cedi gained at least 41.78 percent in value between January and the end of May 2025.
This currency strength has helped lower the cost of imported goods and had a knock-on effect on locally produced items that rely on imported inputs, Iddrisu explained.
Gold reserves and fiscal strategy pay off
Analysts attribute the cedi’s resilience to high global gold prices and the government’s aggressive gold purchase policy. Combined, these have helped shore up the country’s reserves and reduce reliance on foreign exchange for imports.
The GSS said the data reflects increasing macroeconomic stability and the likely success of short-term monetary interventions. However, economists caution that continued progress depends on sustained currency strength, disciplined fiscal policy, and a continued decline in global commodity prices.
