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    Home » Inflation drops to four year low at 6.3%  …Finance minister expresses optimism
    Economy and Finance

    Inflation drops to four year low at 6.3%  …Finance minister expresses optimism

    Adnan AdamsBy Adnan AdamsDecember 8, 2025No Comments6 Views
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    Ghana’s inflation rate dropped to 6.3% in November 2025, marking the eleventh consecutive month of decline and the lowest level since the 2021 rebasing of the Consumer Price Index (CPI).

    Ghana’s Finance Minister, Dr Cassiel Ato Forson hails this as “real, measurable progress,” attributing the success to the government’s economic stabilization measures.

    Dr. Ato Forson has alluded that the numbers confirm that key reforms are delivering results and expressed particular satisfaction with the improvement in food prices.

    “I am especially delighted by the sharp fall in food inflation, down from 9.5% in October to 6.3% in November,” he noted, adding that the shift will bring relief to households nationwide.

    Key Highlights:

    – Food Inflation: Dropped from 9.5% in October to 6.6% in November, providing relief to households.

    – Local Inflation: Slowed from 8.0% to 6.8%, driven by improved domestic food availability and reduced fuel pressures.

    – Imported Inflation: Eased from 7.8% to 5.0%, reflecting lower global commodity prices and improved import dynamics.

    Dr. Forson emphasizes that this decline isn’t just about food prices; it’s a broad-based improvement across the economy. Analysts believe this sustained decline could support further economic stability and improve conditions for businesses and consumers.

    Expert Insight

    Richmond Eduku, a Finance and Energy Policy Analyst, argues that Ghana’s achievement isn’t merely due to IMF projections. Instead, it’s a result of deliberate policy implementation and disciplined management.

    He points out that IMF forecasts are conditional and often derailed by policy slippages and global shocks.

    Economic Implications

    Easing inflation has a rippling effect on key economic measures or indicators as it is currently reflecting in interest rate easing. With inflation within the Bank of Ghana’s target band, policymakers may gain flexibility to stimulate credit and private-sector growth.

    Analysts say the sustained decline in inflation could support further economic stability and improve conditions for businesses and consumers as the recovery strengthens.

    Also, the sharp disinflation strengthens the investment climate by reducing macroeconomic risk and signaling policy discipline.

    As Ghana continues to navigate its economic recovery, experts urge businesses to capitalize on this favorable environment by investing in efficiency and reinforcing local supply chains.

    GSS announcement

    The government statistician, Dr. Alhassan Iddrisu, last week, attributed the decline to broad-based improvements in both food and non-food inflation, supported by stabilising market conditions.

    According to data from the Ghana Statistical Service (GSS), food inflation dropped sharply from 9.5 percent in October to 6.6% in November, reflecting sustained easing across major food groups, improved supply, and moderated transport and distribution costs.

    The report also shows continued stabilisation in both locally produced and imported goods. Local inflation declined from 8.0% in October to 6.8% in November, driven by improved availability of domestic food items, reduced fuel-related pressures, and relative currency stability.

    Imported inflation eased from 7.8% to 5.0% over the same period, reflecting lower global commodity prices and improved import cost dynamics.

    The combined decline indicates that price pressures are easing across the entire basket of goods, covering both home-produced and imported essentials.

    Dr. Iddrisu described the development as a meaningful step toward restoring economic stability: “Ghana’s inflation has dropped to 6.3% in November 2025, the lowest since the 2021 rebasing and the 11th straight month of decline.”

    For households and businesses, the data signals a more predictable cost environment after years of volatility influenced by global shocks, supply-chain disruptions, and currency depreciation.

    The GSS said it will continue to monitor pricing trends closely to help sustain the gains in the months ahead.

     

    By Adnan Adams Mohammed

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Dr. Ato Cassiel Forson Ghana Statistical Service (GSS Inflation drops
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