Ghana’s annual inflation rate has significantly slowed to 5.4 percent in December 2025, marking the lowest level since 2021 and fueling anticipation of potential interest rate cuts by the central bank. This sustained disinflation, the 12th consecutive month of decline, is largely attributed to a robustly strengthening currency and easing food prices, according to recent analyses of official data. The primary keyword “Ghana inflation” is now positioned within the first 100 words to capture search interest.
The latest figures from the Ghana Statistical Service reveal a notable shift towards price stability. Food inflation, a critical component impacting household budgets, decreased to 4.9 percent in December from 6.6 percent in November. Concurrently, non-food inflation saw a slight easing, moving from 6.1 percent to 5.8 percent. On a monthly basis, the consumer price index experienced a 0.9 percent rise, remaining consistent with the previous month’s trend.
What is Ghana’s inflation rate in December 2025? Ghana’s annual inflation rate in December 2025 fell to 5.4 percent, reaching its lowest point since a consumer price rebasing exercise in 2021, indicating a significant move towards macroeconomic stability.
Government Statistician Alhassan Iddrisu highlighted this steady decline as a clear signal of a sustained transition toward price stability and improved macroeconomic conditions. He emphasized that December’s inflation rate represents the lowest recorded figure since the significant consumer price rebasing that occurred in 2021.
Lower food inflation directly contributes to alleviating pressure on household budgets. This easing is evident across various key food categories, including cereals, vegetables, fish, and meat products, which have experienced slower price growth.
When considering historical data, excluding the 2021 rebasing exercise, the December inflation figure would actually represent Ghana’s lowest inflation rate in an impressive 23 years. This context underscores the magnitude of the current disinflationary trend.
While monthly food prices saw a 1.1 percent increase due to typical seasonal factors, officials caution that short-term price fluctuations may continue. However, these are expected to occur within a broader trend of easing inflationary pressures across the economy.
On an annual average basis, inflation has dramatically decreased. It fell to 14.6 percent in 2025, a significant drop from 21 percent in 2024 and 30.2 percent in 2023, according to World Bank data. This downward trajectory is impressive.
The headline inflation rate has experienced a remarkable reversal, declining sharply from 23.5 percent at the beginning of 2025 to the current 5.4 percent in December. This is a stark contrast to December 2022, when inflation soared above 54 percent during a severe currency and balance-of-payments crisis.
This consistent disinflation has instilled confidence in policymakers to gradually unwind emergency monetary tightening measures. The goal is to do so without jeopardizing the stability of the exchange rate, a crucial element for economic health.
Ghana has been recognized as Africa’s most aggressive rate-cutter in 2025. Between January and November, the Bank of Ghana implemented substantial reductions in its benchmark policy rate, slashing it by 1,000 basis points from 27 percent down to 18 percent, the lowest since April 2022.
Inflation’s return to the central bank’s target band of 6–8 percent occurred in September, when it slowed to 9.4 percent. This event further reinforced the perception that price stability is firmly taking hold as both fiscal and monetary conditions stabilize.
The improving economic growth dynamics have coincided with this easing inflation. Africa’s leading gold producer expanded by 5.5 percent year-on-year in the third quarter of 2025, with support coming from a recovery in both the agriculture and services sectors.
External support for Ghana’s economy has also strengthened considerably. The International Monetary Fund recently concluded the fifth review of Ghana’s loan program, resulting in an immediate disbursement of approximately $385 million and bolstering confidence in the nation’s reform trajectory. This external validation is significant.
The slowdown in Ghana’s inflation has been significantly bolstered by a strong rebound in its currency. Data indicates that the Ghanaian cedi has achieved its first annual gain against the US dollar since at least 1994. This appreciation is driven by record gold prices and a general weakness in the US dollar globally.
The cedi has appreciated by approximately 41 percent year-to-date, positioning it as the strongest-performing currency among 144 tracked globally, excluding the Russian rouble. This rally represents a dramatic turnaround for a currency that experienced persistent depreciation over the last decade due to fiscal mismanagement and balance-of-payments challenges.
These substantial gains follow Ghana’s early repayment of a $709 million Eurobond. This action signals renewed confidence in its debt-restructuring program and reinforces the country’s broader economic recovery efforts, making Ghana’s economic story one to watch.
