Ghana is experiencing a broad-based slowdown in inflation, driven by a stronger currency and rising commodity prices, Bloomberg reported. The cedi has appreciated approximately 23 percent against the US dollar so far this year, stabilising near 11.95 per dollar in Accra after a period of depreciation, and easing import-driven price pressures.

The West African country, the world’s second-largest cocoa producer and Africa’s top gold exporter, recorded annual consumer price growth of 11.5 percent in August, down from 12.1 percent in July. On a monthly basis, prices fell 1.3 percent. Food inflation, a major contributor to household expenditure, moderated to 14.8 percent from 15.1 percent, while non-food price growth slowed to 8.7 percent from 9.5 percent.

The sustained decline in prices strengthens the case for further monetary easing. The Bank of Ghana reduced its policy rate by 300 basis points to 25 percent in July and will review economic data at its September 17 monetary policy committee meeting. Governor Johnson Asiama stated that the committee will “continue to assess incoming data and likely reduce the policy rate further should the disinflation trend continue,” though recent volatility in the cedi may prompt caution.

The central bank expects inflation to return to its target range of 6 to 10 percent by the end of the year. Analysts say Ghana’s trajectory illustrates how commodity windfalls and currency resilience can jointly stabilise prices, creating a window for flexible policy and bolstering investor confidence in the region.