Inflation Drops to 21.2% in April, Easing for Fifth Straight Month Amid Stronger Cedi-GHANA

Inflation in Ghana dropped to 21.2% in April 2025, the lowest level recorded in eight months, signaling a continued easing of price pressures. This decline marks a modest improvement from March’s rate of 22.4% and comes as the local currency, the cedi, strengthens against major trading currencies. The stronger cedi has played a key role in reducing import-related costs, helping to contain overall price increases.

This April figure represents the fifth consecutive month of disinflation, highlighting a gradual but consistent improvement in Ghana’s inflation outlook for 2025. According to the data, consumer prices dropped by 0.8% on a month-on-month basis, a development that points to improved price stability. This downward trend in inflation offers some relief for consumers who have been grappling with the high cost of living in recent years.

The fall in inflation was driven by declines in both food and non-food price categories. Food inflation slowed to 25.0% in April, down from 26.5% in March, while non-food inflation also eased, dropping from 18.7% to 17.9% over the same period. These shifts suggest a broader deceleration in consumer price growth across key sectors.

If the trend continues, policymakers and consumers alike could gain increased confidence in the country’s economic stability. A sustained reduction in inflation may also pave the way for interest rate adjustments and improved investor sentiment, both of which are crucial for economic recovery and growth.

Source: Citi newsroom