Ghana’s Inflation Rate Drops Below 10% For the First Time Since 2021

• Ghana's inflation rate continued its nine-month decline following the latest update from the statistical service
• Government statistician Alhassan Iddrisu said the reasons for the inflation were related to food prices
• The Ghana Statistical Service noted that this was the lowest level of inflation since August 2021

Ghana's annual consumer inflation rate slowed for the ninth consecutive month in September, falling to 9.4% year-on-year from 11.5% in August.

The Ghana Statistical Service noted that this was the lowest level since August 2021. The previous inflation rate stood at 11.5% in August.

Government statistician Alhassan Iddrisu told the press the decline was primarily driven by the easing of food prices compared to non-food prices.

"The steady drop in inflation... shows a sustained shift in prices that signals Ghana is firmly on the path to macroeconomic stability."

Last month, the Bank of Ghana reduced its key interest rate by a record 350 basis points to 21.5%.

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Reuters reported that it cited a sustained decline in inflation and an improving macroeconomic outlook.

The bank expects inflation to reach its medium-term target of 6% to 10% in the fourth quarter of 2025.

The government is targeting to end the year at 11.9% inflation.

Ghana's other macroeconomic targets

The government’s macroeconomic targets include a 5.3% non-oil GDP growth rate, a primary balance surplus of 1.5% of GDP, and gross international reserves covering at least three months of imports, from 2.9 months' import cover at the end of 2024.

According to the Ghana Statistical Service, GDP expanded by 3.6% in the fourth quarter of 2024.

B&FT reported that this was lower than the 5.1% recorded in the same period of 2023.

However, the economy maintained an upward trajectory for the full year, with an estimated GDP growth of 5.7% in 2024, up from 3.1% in 2023.

The oil and gas sector played a key role in the expansion, while non-oil GDP posted a robust 6% growth.

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The Mahama administration is confident it will maintain fiscal discipline in 2025.

It is projecting higher revenue as it navigates an International Monetary Fund programme.

Forson outlined measures designed to consolidate ongoing economic gains while ensuring sustainable debt levels.

PURC increases electricity tariffs

In September, YEN.com.gh reported that the Public Utilities Regulatory Commission increased electricity tariffs by 1.14%.

Water tariffs will remain unchanged despite the utility providers’ call for an over 200% increment, according to the PURC

The adjustment followed the quarterly review of inflation, exchange rates, and generation costs

Source: YEN.com.gh