Ghana’s Inflation Drops Again, Now at 21.2% in April

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Ghana’s inflation rate has dropped for the fourth straight month, falling to 21.2% in April 2025 from 22.4% recorded in March, according to data released on Wednesday by the Ghana Statistical Service.

The country’s Government Statistician, Alhassan Iddrisu, made the announcement during a press briefing, noting that both food and non-food inflation eased last month. He said food inflation still remains the biggest factor affecting overall consumer prices, but the recent figures show a positive trend towards price stability.

“Food inflation remains the biggest price driver,” Iddrisu said, “but it has slowed down, and that’s helping the overall numbers.”

Ghana, one of West Africa’s key economies and a major producer of gold, cocoa, and oil, has been struggling with high inflation for more than two years. The inflation rate has stayed far above the central bank’s target of 8%, plus or minus 2 percentage points, forcing authorities to maintain tight monetary policies.

In March, Bank of Ghana Governor Johnson Asiama said the country needed to continue with strict monetary measures to bring inflation under control. The central bank surprised analysts that month by increasing the benchmark interest rate, in a move aimed at reducing inflationary pressure and stabilising the local currency.

Governor Asiama had said at the time that the decision to raise rates would be reviewed again at the Monetary Policy Committee’s next meeting scheduled for May.

Meanwhile, Ghana’s Finance Minister, Cassiel Ato Forson, told parliament during the budget presentation in March that the government’s strategy to fight inflation includes aggressive cuts in public spending. He said the goal is to reduce inflation to 11.9% by the end of 2025, a target some analysts say may be ambitious given the current economic conditions.

He explained that the government’s approach includes better fiscal discipline, reforms in revenue collection, and reduced borrowing to help ease pressure on the economy.

Despite the recent improvement, Ghanaians continue to feel the impact of high prices in their daily lives, especially in food and transportation costs. The central bank and finance ministry are under pressure to deliver real results, not just in inflation numbers, but in terms of economic relief for households.

Economic experts say the latest figures are a good sign, but caution that inflation could rise again if food prices go up due to seasonal changes, poor harvests, or if international oil prices spike.

Ghana’s inflation rate peaked at over 50% in 2022 before gradually slowing down following a series of economic reforms, including a $3 billion bailout agreement with the International Monetary Fund (IMF) in 2023. The IMF deal helped the country restructure some of its debt and stabilise its finances.

As Ghanaians wait for more stability in prices, the coming months will show whether the government’s measures can keep inflation on a downward path or if further actions will be needed.