Inflation declines to 11.5% in August, lowest in four years

Inflation fell to 11.5% in August 2025, the lowest level in four years, according to a press statement issued by the Bank of Ghana.

The announcement was made during the Monetary Policy Committee’s official press communication on September 17, 2025, following its one hundred and twenty-sixth meeting held from September 15 to 17, 2025.

The MPC explained that the decline in inflation marked the eighth consecutive month of disinflation. The Committee attributed the trend to monetary policy measures, fiscal consolidation, appreciation of the cedi, and improved food supply.

The statement noted that underlying inflationary pressures also moderated. Core inflation, which excludes energy and utilities, showed further declines. Inflation expectations among consumers, businesses, and the banking sector also fell, which the Bank said reflected stronger confidence in the disinflation process.

The MPC projected that inflation would return to its medium-term target of 8% plus or minus 2% by the end of 2025. However, it cautioned that adjustments in utility tariffs could add temporary pressures.

According to the statement, sustaining the downward trend will require continued fiscal and monetary discipline, effective liquidity management, and stronger reserves. The Bank reaffirmed that it would monitor developments closely and respond as necessary to preserve stability.

The fall in inflation, according to the MPC, provides relief for households and businesses by reducing costs and supporting purchasing power. The Committee said the outcome shows resilience in the economy and the effectiveness of policy reforms.