Ghana’s economic recovery gained momentum in April as the local currency strengthened and inflation fell for the fourth consecutive month, according to new data from the Ghana Statistical Service (GSS).
The consumer price index dropped to 21.2% in April, down from 22.4% in March, continuing a trend that began earlier in the year. The appreciation of the cedi played a significant role in easing import costs, which helped drive down prices of non-food items and overall inflation.
Government Statistician Prof. Samuel Kobina Annim disclosed the figures in Accra on Wednesday, attributing the moderation in inflation to favourable exchange rate movements and more stable pricing in key import categories.
“Non-food inflation also slowed to 17.9 percent in April from 18.7 percent in March, largely due to the decline in import costs,” he said.
The Ghanaian cedi posted one of its strongest monthly performances in April, joining a handful of resilient African currencies such as the Tunisian Dinar, Moroccan Dirham, and Seychellois Rupee.
This performance provided a cushion for import-reliant sectors of the Ghanaian economy, making goods more affordable and easing inflationary pressures.
April’s inflation decline comes on the heels of sustained monetary policy tightening by the Bank of Ghana. In March, the central bank unexpectedly raised its benchmark interest rate by 100 basis points to 28%—a move analysts say has helped anchor inflation expectations.
The latest data adds to growing optimism that Ghana is steadily pulling out of its most recent economic slump, which saw inflation peak at over 50% in late 2022 amid high global commodity prices and a domestic debt crisis. Since then, the country has made strides in stabilising its macroeconomic fundamentals, including through a $3 billion loan agreement with the International Monetary Fund (IMF), which is now in its implementation phase.
Despite the improvements, economists caution that Ghana is not out of the woods yet. Structural challenges, including food price volatility, energy sector arrears, and external debt obligations, continue to pose risks to the economy.
Still, the recent performance of the cedi offers hope, especially for businesses dependent on foreign inputs.
“Any continued stability of the currency is good news for importers and consumers alike,” said Kwabena Mensah, a financial analyst based in Accra. “It reduces cost pressures and supports the wider effort to bring inflation under control.”
Looking ahead, analysts expect inflation to continue trending downward, provided the cedi remains stable and fiscal discipline is maintained. The GSS is expected to release further breakdowns of April’s inflation data in the coming days, which will offer more insight into price trends across various regions and sectors.
For many Ghanaians still grappling with high prices, the recent relief is welcome. But with food inflation still elevated and the cost of living high for many households, the government is under pressure to build on this progress and ensure a more inclusive recovery.
