Ghana's Inflation Rate Slows to 5.4% in December 2025
- Ghana's inflation rate declined to 5.4% in December 2025, marking a 12-month consecutive drop
- The stability of food and non-alcoholic beverage prices significantly contributed to the inflation slowdown
- Ghana is coming off a 2025 in which it recorded overwhelmingly positive macroeconomic achievements, like the reduced inflation rate
Ghana's consumer inflation slowed for the 12th consecutive month, falling to 5.4% year on year in December from 6.3% in November.
This was the lowest inflation rate since a rebasing exercise in 2021, a great improvement from the 23.8% when Mahama took office.
Source: Getty Images
The statistical service said the inflation pressures were coming down across most major components
Government statistician Alhassan Iddrisu told a press conference that the drop was mostly driven by a slowdown in food and non-alcoholic beverages prices.
"This steady decline signals a sustained shift toward price stability and improving macroeconomic conditions."
The service shared the inflation overview on Facebook.
The Bank of Ghana targets inflation of 8%, with a tolerance band of 2 percentage points either side.
Ghana's annual consumer inflation rate slowed to below 10% in September 2025 for the first time since 2021.
Ghana's economy expanded by 5.5% year on year in the third quarter of 2025, driven by an improvement in the agriculture and services sectors, the statistics agency said in December.
The International Monetary Fund last month completed the fifth review of the country's loan programme, allowing for an immediate disbursement of around $385 million.
Ghana also settled a $709 million Eurobond obligation, marking a key milestone in its economic recovery efforts.
The Finance Ministry said this development underscores Ghana's commitment to disciplined debt management.
How did Ghana's economy perform in 2025?
Ghana is coming off a 2025 in which it recorded overwhelmingly positive macroeconomic indicators across the board.
After inheriting an economy weighed down by inflation above 23%, interest rates north of 30%, and a sharply depreciating cedi, the Mahama administration entered 2026 in good standing.
Source: Getty Images
Inflation stands at 6.3% as of November 2025, the lowest since February 2019. Treasury bill rates plunged from over 30% at end-2024 to about 11% in 2025.
For the first time in decades, the cedi recorded an annual appreciation against all major currencies, including 40.7% against the US dollar.
Trade balance posted a surplus of US$8.5 billion by the end of October 2025, up from US$2.8 billion a year earlier.
Speaking to YEN.com.gh, Samson Asaki Awingobit, the Executive Secretary of the importers and exporters association, lauded the government for these macroeconomic milestones
"We appreciate the gains the government has brought… the year ended very successfully.”
"This is a government at we are very confident in. This is a government that has brought confidence to businesses. This is a government that has worked hard to bring stability."
Cedi predicted to weaken against US dollar in 2026
YEN.com.gh reported that the Ghana cedi is expected to weaken against the US dollar in 2026, according to UK-based firm Fitch Solutions.
Fitch Solutions said Global gold prices and reserves are expected to limit pressure on Ghana's exchange rate.
The UK firm noted that private consumption growth is forecasted at 6.5%, boosting GDP amidst rising public sector wages.
Proofreading by Samuel Gitonga, copy editor at YEN.com.gh.
Source: YEN.com.gh
