Ghana’s annual inflation rate continued its dramatic downward trajectory, falling for the eleventh consecutive month to 6.3% in November 2025. This figure represents a significant drop from the 8.0% recorded in October 2025 and marks the first time the country’s inflation has fallen below the upper limit of the Bank of Ghana’s target band (6% to 10%) in over four years.
The data, released by the Ghana Statistical Service (GSS) and presented by Government Statistician Dr. Alhassan Iddrisu, signifies a major milestone in the country’s economic stabilization program.
Context: The Inflation Crisis and Stabilization Program
To fully appreciate the current figure, it is crucial to recall the economic environment of late 2023 and early 2024. Ghana was facing its worst economic crisis in decades, with inflation soaring to a peak of over 54% in December 2023, driven by the severe depreciation of the Cedi, high global commodity prices, and high national debt.
The subsequent disinflation (the slowdown in the rate of price increases) has been the direct result of a combination of strict policy measures:
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Tight Monetary Policy: The Bank of Ghana (BoG) implemented aggressive interest rate hikes, raising its benchmark monetary policy rate to historic highs (e.g., above 29% in early 2025) to curb liquidity and anchor inflation expectations. As inflation has cooled, the BoG has recently begun to deliver steep rate cuts (e.g., to 18% in November 2025) to support economic growth.
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Fiscal Consolidation: Government reforms focused on cutting spending and improving revenue collection, which helped narrow the fiscal deficit.
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Currency Strength: The Ghana Cedi experienced a remarkable turnaround and became one of the world’s best-performing currencies in 2025, largely supported by favorable global prices for key exports like gold and cocoa. A stronger Cedi directly reduces the cost of imported goods, a major component of Ghana’s inflation.
Drivers of the November Decline
The November 2025 rate of 6.3% was primarily driven by a broad-based slowdown in prices across major consumption categories, as measured by the Consumer Price Index (CPI) basket.
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Food Inflation: The most substantial relief came from the food sector, where inflation fell sharply to 6.6% (down from 9.5% in October). This suggests improved domestic harvest yields, better logistics, and the positive impact of the stabilized exchange rate cutting the cost of imported food items.
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Non-Food Inflation: This category, which includes housing, utilities, transport, and clothing, also saw a notable drop to 6.1% (from 6.9% in October).
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Goods vs. Services: Inflation for goods slowed significantly to 7.3% (from 9.3%), while the services sector eased to 3.8% (from 4.6%).
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Local vs. Imported: Inflation for locally produced items decreased from 8.0% to 6.8%, indicating that domestic cost pressures, such as transport and production, are easing alongside the reduced cost of imported items.
It should be noted that the Month-on-Month (MoM) inflation rate—the price change between October and November—was 0.9%, indicating that prices are still rising, but at a very slow pace compared to the previous year.
Regional Disparities and Structural Challenges
While the national average figure is positive, the GSS data highlights persistent regional disparities in the cost of living, which continue to challenge the equitable distribution of economic relief:
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Highest Rate: The North East Region recorded the highest inflation rate at 12.3%, more than double the national average.
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Lowest Rate: Conversely, the Savannah Region recorded the lowest at -0.02% (representing slight deflation, or a fall in prices).
These stark differences often reflect structural weaknesses, as the GSS notes that factors like poor infrastructure, high transport costs, and reliance on climate-sensitive staple crops tend to keep inflation sticky and high in the northern and inland regions, even when urban areas stabilize.
Implications and Outlook
The GSS encouraged businesses to capitalize on the stable, low-inflation environment by investing in efficiency, strengthening local supply chains, and passing cost savings on to consumers.
This consistent disinflation strengthens the case for the Bank of Ghana to maintain its path of monetary easing. Analysts project that if the trend continues, the low inflation rate will boost consumer purchasing power and support Gross Domestic Product (GDP) growth, cementing Ghana’s economic recovery and reinforcing confidence in its macroeconomic management.
