Ghana’s inflation rate remains in a favourable range despite increasing to 5.2% in September 2026, according to the Bank of Ghana’s Director of Research, Dr Philip Abradu-Otoo.
He said comparisons between Ghana and other African economies must take account of the different monetary policy systems used across the continent.
Dr Abradu-Otoo pointed out that several West African countries operate currency pegs against the euro, a stable currency which helps those economies record lower inflation figures. Ghana, by contrast, uses an inflation-targeting framework in which interest rates are the main instrument for managing price rises.
He made the comments on Tuesday, October 20, 2026, at the launch of the Institute of Statistical, Social and Economic Research’s State of the Ghanaian Economy Report 2025.
“So we have an inflation-targeting framework of monetary policy, and we use the interest rate tool as the main tool to control inflation. Now if you go to most of these countries, even if you look at our peers in the West African sub-region, they are using a form of a currency peg,” he said.
“So their currencies have been pegged to the euro. The euro is a stable currency, and therefore it feeds into their inflation numbers as very low inflation.”
He added: “By and large, our inflation numbers are in very good territory, and we should be happy about that.”
Dr Abradu-Otoo also explained the recent fall in the Bank of Ghana’s international reserves, linking it to disruption to gold exports caused by the crisis in the Middle East.
The interruption affected the accumulation of reserves during the first seven months of the year. As a result, the central bank used part of its holdings to support trade and wider economic activity.
Gold exports resumed in September, he said, with reserve inflows expected to strengthen before the end of the year.
Debt figures affected by exchange rate
Addressing Ghana’s debt position, Dr Abradu-Otoo said the modest increase in the figures did not result from new borrowing.
Instead, he attributed the change to movements in the exchange rate, noting that the cedi has depreciated by 10.8% since the beginning of the year.
His comments placed the latest inflation figure, reserve position and debt movement within the wider economic conditions facing Ghana, while stressing that the country’s inflation performance should be judged against the monetary framework it operates rather than through direct comparisons with economies using currency pegs.
