Gov’t Beats Inflation Target as October Rate Drops to 8.0% — But Ghanaians Still Feel the Pinch
Photo credit- Unsplash
Accra, Ghana — Ghana’s fight against inflation has hit a major milestone — at least on paper. The latest data from the Ghana Statistical Service shows that inflation slowed to 8.0% in October 2025, down from 9.4% in September and 23.8% in December 2024. The figure not only reflects steady macroeconomic improvement but also means government has exceeded its 2025 target, originally set at 11.9%, by a margin of nearly 4 percentage points.
However, beyond the numbers, many households say their “pockets still feel empty.”
In the 2025 Budget, the Minister for Finance had set ambitious macro targets, including: Overall GDP growth: 4.0%, Non-oil GDP growth: 4.8%, End-year inflation: 11.9%, Primary balance: +1.5% of GDP.
By October, Ghana had not only surpassed the inflation target but managed to bring the rate down faster than expected. “Inflation reduced to 8% from 9.4% in September,” the Minister noted. “This means prices in Ghana were 8% higher in October 2025 than they were in October last year.”
While lower inflation suggests that prices are rising more slowly, it does not mean prices are falling a key distinction for many struggling households. Food remains the largest driver of household expenditure, taking up about 43% of income. The slowdown in food inflation alongside a stabilizing cedi helped pull down the overall rate.
But non-food inflation, particularly housing, transport, and utilities, continues to bite, keeping the cost of living high despite the macroeconomic gains.
With inflation now below target, all eyes are on the Finance Minister’s 2026 Budget Statement, expected next week. The government is expected to outline strategies to sustain the gains, expand growth beyond consumption, and ease household cost pressures.
Economists, however, warn that supply shocks, tariff adjustments, and fuel price volatility could threaten the current momentum.
“It’s a technical success, yes but not yet a household victory,” said an analyst from the University of Ghana Business School. “Inflation easing doesn’t automatically translate into affordability. The structural cost of living remains high.”
In the macroeconomic dashboard, Ghana looks more stable: inflation tamed, the cedi strengthening, and fiscal discipline improving.
But in the market stalls of Makola, the message is simpler: “Tomatoes may not double in price anymore, but they’re still not cheap.”
As the government celebrates hitting its inflation target, the question remains whether that stability will finally translate into relief for the ordinary Ghanaian consumer.
Read Also
