Ghana's Inflation Drops to Single Digits for First Time in 4 Years – Finance Minister

Ghana has achieved single-digit inflation for the first time in four years, marking what the finance minister describes as the most rapid period of disinflation the country has seen in two decades. The development signals a major shift in the nation’s economic trajectory after months of aggressive policy measures aimed at stabilizing prices and restoring macroeconomic confidence.

Speaking during the presentation of the latest economic update, the finance minister noted that inflation—once soaring to record highs and peaking above 50 percent in the heat of the economic crisis—has now dropped dramatically into single-digit territory. He credited the turnaround to disciplined fiscal consolidation, tighter monetary policy, and improvements in the supply of key commodities.

“This is the fastest and most sustained decline in inflation in 20 years,” he stated, calling it evidence that recovery efforts are gaining firm ground. He emphasized that coordinated actions between the Ministry of Finance and the Bank of Ghana have been crucial in cooling the persistent price pressures that burdened households and businesses.

The return to single-digit inflation represents a psychological and economic relief for consumers who have endured sharp increases in food, transport, and utility costs over the last few years. Traders and manufacturers, who previously complained about unpredictable input costs, are also expected to benefit from a more stable price environment.

Economists, however, caution that sustaining this momentum will require consistent policy discipline. They note that global uncertainties, exchange-rate movements, and Ghana’s fiscal pressures still pose risks that could reverse the gains if not carefully managed.

The finance minister assured that government remains committed to maintaining stability while promoting growth. He said upcoming measures will focus on strengthening local production, improving revenue mobilization, and supporting vulnerable sectors to ensure that the disinflation trend translates into real improvements in living standards.

For many Ghanaians, the return to single-digit inflation offers a rare moment of optimism in a period marked by economic turbulence. Analysts believe the achievement—if maintained—could boost investor confidence, ease borrowing costs, and strengthen the cedi’s performance in the near term.

The government is expected to provide additional details on the broader economic outlook in its next mid-year fiscal review, as stakeholders continue to monitor whether the downward inflation trend becomes a long-term feature of Ghana’s economic recovery.