{"id":198684,"date":"2025-09-04T04:57:21","date_gmt":"2025-09-04T04:57:21","guid":{"rendered":"https:\/\/www.europesays.com\/us\/198684\/"},"modified":"2025-09-04T04:57:21","modified_gmt":"2025-09-04T04:57:21","slug":"ghana-races-toward-single-digit-inflation-in-stunning-economic-rebound","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/198684\/","title":{"rendered":"Ghana races toward single-digit inflation in stunning economic rebound"},"content":{"rendered":"

\n Ghana is entering a new era of economic stability as inflation continues to fall, signaling a substantial shift from the double-digit price pressures that have dragged on consumers and companies in previous years.\n <\/p>\n

\n Alhassan Iddrisu, a government statistician, reported that prices decreased 1.3% month over month and that annual inflation decreased to 11.5% in August from 12.1% in July.\n <\/p>\n

\n A larger disinflationary trend that has been gaining traction since the beginning of the year is reinforced by the fall.\n <\/p>\n

\n The disinflationary trend is evident in an array of sectors, with food inflation falling to 14.8% in August from 15.1% the previous month and non-food inflation falling to 8.7% from 9.5%.\n <\/p>\n

\n This gradual moderation reflects a longer-term trend that began in early 2025, when inflation was over 20%.\n <\/p>\n

\n For context, inflation declined to 18.4% in May from 21.2% in April, then to 13.7% in June, owing mostly to a jump in gold prices, which increased the country’s foreign exchange profits and helped stabilize the cedi.\n <\/p>\n

\n Ghana is profiting from the surge in global commodity prices, including two of its primary exports, gold and cocoa.\n <\/p>\n

\n The increase in the price of both products has generated significant foreign cash inflows, resulting in a 23% cedi increase against the dollar this year.\n <\/p>\n

\n As reported by Bloomberg<\/a>, a stronger local currency has cut down the cost of imports, hence lowering the country\u2019s consumer prices.\n <\/p>\n

\n Following the six-day decline, the cedi traded barely changed at 11.95 per dollar in Ghana’s capital, Accra.\n <\/p>\n

\n Despite these variations, the overall currency trend has been supportive of disinflation, in stark contrast to 2022 and 2023, when the cedi’s weakening supported import-driven price pressures.\n <\/p>\n

John Mahama’s Government reforms shape stability<\/p>\n

\n The favorable trend can be linked to government policies.\n <\/p>\n

\"John <\/p>\n

\n Since taking office, President John Mahama’s government<\/strong><\/a> has prioritized fiscal prudence, currency stability, and export growth as key components of its economic strategy.\n <\/p>\n

\n Efforts to enhance budgetary discipline, paired with positive external circumstances, have enabled the economy to reset after years of turmoil.\n <\/p>\n

Ghana’s Central Bank policy and interest rates<\/p>\n

\n The disinflationary environment gives the Bank of Ghana much-needed breathing room as it pursues a restrictive monetary policy to reduce inflation and restore economic confidence.\n <\/p>\n

\n In July, the central bank dropped its key interest rate by 300 basis points to 25%, marking its first substantial step to lower borrowing rates in years.\n <\/p>\n

\n With inflation currently at 11.5%, well within reach of the bank’s revised year-end target of 12%, economists anticipate another rate drop at the forthcoming Monetary Policy Committee (MPC) meeting on September 17.\n <\/p>\n

\n Given Ghana’s recent experience with inflationary shocks, this would be a significant success.\n <\/p>\n","protected":false},"excerpt":{"rendered":"Ghana is entering a new era of economic stability as inflation continues to fall, signaling a substantial shift…\n","protected":false},"author":3,"featured_media":198685,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64,79,67,132,68],"class_list":{"0":"post-198684","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-united-states","11":"tag-unitedstates","12":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115144258038982267","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/198684","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=198684"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/198684\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/198685"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=198684"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=198684"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=198684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}