In April 2025, Ghana’s annual inflation rate decreased to 21.2%, down from 22.4% in March, marking the fourth consecutive month of decline. This trend is attributed to both food and non-food inflation moderating, with food inflation remaining a significant contributor to the overall rate .
The appreciation of the cedi has played a crucial role in easing imported inflation by lowering the cost of foreign goods and reducing pressure on foreign exchange demand. This has contributed to price stability and supported the Bank of Ghana’s disinflation efforts .
Despite these positive developments, inflation remains above the Bank of Ghana’s target range of 6% to 10%. The central bank has maintained its key interest rate at 28.0% to reinforce its tight monetary policy amidst easing inflation pressures .
If the current trends continue, Ghana’s inflation rate could approach the central bank’s target range by early 2026, assuming no unexpected economic shocks occur. The combination of a stronger cedi, tight monetary policy, and fiscal consolidation efforts are expected to further anchor inflation expectations and support economic stability.
