Ghana’s inflation continued downwards in October, easing to 8.0 percent year-on-year, the lowest level since mid-2021 and the tenth consecutive monthly decline, as food and goods prices moderated.
The figure, released by the Ghana Statistical Service, compares with 9.4 percent in September and deepens confidence that the country’s painful disinflation drive may finally be yielding real relief for consumers.
Perhaps more significantly, month-on-month inflation slipped into negative territory at –0.4 percent, suggesting a modest pullback in headline prices across several consumer categories. Analysts view this as a critical inflexion point: while headline inflation has been falling steadily for months, October’s negative monthly print hints that price pressures are not just slowing but may be retreating.
The easing was led by a continued decline in food prices, which slowed to 9.5 percent from 11.0 percent in September. Non-food inflation also fell, reaching 6.9 percent from 8.2 percent. Within the food basket, cereal, vegetable, and oil products recorded the sharpest drops, reflecting improved domestic supply and seasonal harvest effects.
Goods inflation, which captures tangible items such as clothing, household appliances, and processed food, eased to 9.3 percent, while services inflation, covering transport, housing, and education, slipped marginally to 4.6 percent. The goods-to-services inflation gap highlights the enduring sensitivity of consumer prices to input costs and import dynamics, even as service-sector inflation remains relatively muted.
But one striking detail of the data is the divergence between local and imported inflation trends. Locally produced items registered 8.0 percent year-on-year inflation, matching the national average, but were down 0.7 percent month-on-month, suggesting domestic supply chains are stabilising. Imported goods, meanwhile, recorded 7.8 percent inflation, slightly lower than September’s figure, though their month-on-month change was positive at 0.3 percent, a reminder that Ghana’s external exposure remains a potential spoiler for price stability.
This nuance is not lost on policymakers. A strengthening cedi, coupled with lower global food and fuel costs, has softened imported price pressures. Yet global uncertainty, from shipping disruptions in the Red Sea to fluctuations in oil prices, means Ghana’s import-linked inflation could still turn quickly if global supply chains tighten again.
Regional disparities also tell a revealing story. North East Region recorded the highest inflation rate at 17.3 percent, more than double the national average, while Bono East posted the lowest at just 1.1 percent. Such a stark divide underscores Ghana’s uneven inflation geography, one shaped by infrastructure gaps, transport costs, and market access inequalities between urban and rural zones.
For policymakers, this presents a twin challenge: maintaining macroeconomic discipline at the national level while addressing localised price shocks that hurt peripheral regions. As Ghana continues to decentralise fiscal administration, the GSS data could prove critical in informing targeted interventions around logistics and regional food distribution.
The Bank of Ghana is likely to view October’s data as validation of its tight monetary stance. With inflation finally within single digits, the central bank faces a delicate balancing act: sustaining price stability without choking off fragile growth. A premature easing of policy rates could reignite demand pressures; yet, keeping them too high risks strangling credit to small and medium-sized enterprises.
For households and businesses, the latest figures offer cautious relief. Real incomes may begin to recover, and firms could see more predictable input costs heading into the festive season. However, economists warn that “structural disinflation”, anchored in improved productivity, logistics, and food security, must now take precedence over purely monetary fixes.
Ghana’s return to single-digit inflation is symbolically powerful. It marks a psychological turning point after years of double-digit price growth that eroded public confidence and destabilised planning for both consumers and investors. Yet the story is not simply one of victory. Beneath the headline 8 percent lie persistent vulnerabilities, regional inequalities, volatile import bills, and still-fragile supply networks.
As one analyst put it, “Ghana has won the battle of expectations; the war for structural price stability is only just beginning.”
Source: Norvan Report
