Ghana’s inflation fell for an eighth straight month in August, reaching its lowest level in nearly four years and strengthening calls for further cuts to borrowing costs.
By the numbers
- Annual inflation slowed to 11.5% in August from 12.1% in July, according to Government Statistician Alhassan Iddrisu.
- Prices dropped 1.3% month-on-month.
- Food inflation eased to 14.8% (from 15.1%), while non-food inflation fell to 8.7% (from 9.5%).
- The cedi has gained 23% against the dollar this year, driven by rising cocoa and gold prices.
Why it matters
The continued slowdown could push the Bank of Ghana’s Monetary Policy Committee (MPC) to cut interest rates again at its Sept. 17 meeting, following a 300 basis-point reduction to 25% in July.
Yes, but: The cedi’s recent six-day slide — it traded at 11.95 per dollar on Wednesday — may lead policymakers to move cautiously.
What’s next:
- The central bank expects inflation to return to its 6–10% target range by year-end.
- Governor Johnson Asiama said the MPC will “continue to assess incoming data and likely reduce the policy rate further should the disinflation trend continue.”
Source: Bloomberg
