Ghana’s inflation story has taken a dramatic turn, with the Bank of Ghana attributing the sharp decline in consumer prices to deliberate and sustained policy actions rather than luck.

Speaking on the recent inflation figures, Governor of the Bank of Ghana, Dr. Johnson Asiama, insisted that the fall in inflation from 23.8 percent in 2024 to 5.4 percent in December 2025 was the result of firm monetary discipline and coordinated economic management.

According to the Governor, the progress made reflects a conscious effort by the central bank to restore price stability and protect the purchasing power of households and businesses across the country.

Inflation Falls to Single Digits

The December 2025 inflation figure of 5.4 percent represents one of the most significant improvements in Ghana’s recent macroeconomic history. The drop signals a broad-based disinflation process, cutting across both food and non-food items, which had previously been major contributors to rising prices.

Dr. Asiama explained that inflationary pressures have eased considerably as a result of tight monetary policy and improved supply conditions, particularly in the food sector. He stressed that the consistency of these policy measures over time has been crucial in achieving lasting results.

“This trend reflected the broad-based disinflation process across both food and non-food. Certainly, this has not happened by accident but the result of sustained monetary discipline we brought on board, improved food supply and others.”
Dr. Johnson Asiama

Monetary Discipline at the Core

At the heart of the inflation turnaround is the Bank of Ghana’s commitment to monetary discipline. Over the past year, the central bank maintained a tight policy stance aimed at curbing excess liquidity in the economy and anchoring inflation expectations.

This approach involved carefully managing interest rates, strengthening policy credibility, and ensuring that monetary signals were clear and consistent. According to the BoG, these measures helped to slow demand-driven price pressures while restoring confidence in the economy.

The Governor noted that while such policies can be challenging in the short term, especially for borrowers, they are necessary to stabilize prices and create the foundation for sustainable economic growth.

Role of Improved Food Supply

In addition to monetary tightening, improved food supply conditions played a significant role in easing inflation. Better harvests, enhanced distribution, and relative stability in food production helped reduce the sharp price increases that had previously weighed heavily on inflation figures.

Food inflation, which often affects low-income households the most, saw notable moderation. This development, combined with easing non-food inflation, contributed to the overall decline in the inflation rate.

Dr. Asiama emphasized that monetary policy works best when supported by real sector improvements, including agriculture and supply chain efficiency. The recent performance, he said, demonstrates the benefits of policy coordination across different sectors of the economy.

The Governor made these remarks after a courtesy call on the Bank of Ghana by the Asantehene, Otumfuo Osei Tutu II. The visit provided an opportunity for high-level discussions on Ghana’s economic outlook, policy direction, and the progress made in stabilizing the economy.

During the engagement, issues relating to price stability, growth prospects, and long-term economic resilience were discussed. The BoG used the occasion to reaffirm its resolve to maintain macroeconomic stability while supporting initiatives that promote inclusive growth.

Commitment to Price Stability and Growth

Despite the significant progress, the Bank of Ghana has cautioned that maintaining low inflation will require continued discipline and vigilance. The central bank says it remains committed to its primary mandate of price stability as a critical pillar for sustainable economic growth.

Dr. Asiama noted that while inflation has fallen sharply, external shocks, global commodity price movements, and domestic supply disruptions remain risks that must be carefully managed. As such, the BoG will continue to assess economic conditions and adjust policies where necessary to safeguard the gains made.

He stressed that stable prices create a more predictable environment for investment, support job creation, and improve living standards, making inflation control a shared national priority.

The sharp decline in inflation has been welcomed by businesses, consumers, and analysts alike, who view it as a positive signal of renewed macroeconomic discipline. Lower inflation is expected to ease cost pressures on households and improve planning for businesses, particularly small and medium-sized enterprises.