Dr. Theo Acheampong, an economist, is making a pretty clear point here: with inflation trending downward, the Bank of Ghana’s Monetary Policy Committee really has room to adjust the policy rate. At their latest meeting in Accra on May 23, the MPC kept the rate at 28%. No movement there, even though inflation numbers are telling a different story.
Acheampong notes that inflation for June 2025 has dropped sharply to 13.7%, helped along by lower prices across both food and non-food categories. The Cedi’s been stronger, and the international environment is a bit more stable lately, especially with the Israel-Iran ceasefire holding.
Given these developments, he argues it’s time for the Bank of Ghana to consider reducing the policy rate—by at least 100 basis points, potentially more as the year goes on and inflation expectations keep improving. The potential outcome? Businesses and individuals could see some real benefits: lower borrowing costs and, hopefully, an improved cost of living in the months ahead.
Ghana’s inflation rate for June 2025 has eased to 13.7%. Dr. Alhassan Iddrisu, the Government Statistician, announced this during a press briefing in Accra on July 2nd. He attributed the decline mainly to a marked slowdown in the prices of food and other goods. According to Dr. Iddrisu, this shift signals that the inflationary pressures seen in previous months are beginning to subside—a positive development for the economy.
Surprisingly, we saw a 1.2% drop in overall prices from May to June—a clear sign of deflation. It’s not something that happens often, especially in the current market climate. This shift definitely raised some eyebrows in the business world.
Dr. Iddrisu noted, “With inflation dropping steadily over the past six months, we’re finally seeing some real consistency and a genuine shift in price trends. This isn’t just a temporary blip—it’s something businesses can actually plan around.”
According to the latest figures, the Upper West region posted the highest inflation rate at 32.3%, mainly due to escalating food prices and utility costs. In contrast, the Bono region reported the lowest rate at 8.4%. Clearly, the gap between these two regions highlights significant regional disparities in inflationary pressures.
