Ghana recorded its fastest decline in inflation in over 20 years, with headline inflation dropping from 23.8 per cent in December 2024 to 8 per cent in October 2025, returning to single digits for the first time since 2021, Finance Minister Dr Cassiel Ato Forson has stated.
He said the sharp disinflation was driven by fiscal restraint, effective monetary policy, a stable cedi, and improved food supply.
Dr Ato Forson made these remarks while presenting the 2026 Budget Statement and Economic Policy of Government for the year ending 31 December 2026, in Parliament on Thursday, November 13.
He said food inflation fell dramatically from 27.8 per cent to 9.5 per cent, supported by strong harvests, lower transport costs, and agricultural investments in irrigation and mechanization.
He added that non-food inflation also declined from 20.3 per cent to 6.9 per cent, aided by stable utility tariffs and lower global oil prices.
“Mr Speaker, inflation continued to decline sharply through the first ten months of 2025, marking Ghana’s most rapid disinflation in over two decades. This achievement underscores the effectiveness of our coordinated fiscal and monetary policies.”
“Headline inflation fell from 23.8 percent in December 2024 to 8 percent in October 2025, returning Ghana to single-digit inflation for the first time in four years. This turnaround reflects prudent macroeconomic management and restored policy credibility,” he stressed.
The Finance Minister said the progress reflects policy discipline and restored confidence, bringing real relief to households through lower prices and improved purchasing power.
“The decline in inflation was driven largely by lower food inflation. Food inflation dropped from 27.8 percent in December 2024 to 9.5 percent in October 2025, supported by better harvests, reduced transport and storage costs, and improved market access across regions.”
He emphasized that sustaining this stability will require continued fiscal prudence, strong coordination with the Bank of Ghana, and deeper support for domestic food production.
