Ghana Inflation Quickens to 5.2% in September as Non-Food Prices Bite

Ghana's consumer inflation accelerated for the second month running in September, rising to 5.2% year-on-year from 5.0% the previous month, data from the West African country's statistics service showed on Wednesday.

Government statistician Alhassan Iddrisu said non-food inflation was a key driver of the increase, speaking during an online press briefing in Accra.

Non-Food Prices Lead the Climb

Non-food inflation printed at 6.2%, well ahead of food inflation at 4.0%. Iddrisu's presentation showed that non-food prices make up nearly two-thirds of the inflation basket.

"At 6.2% (non-food inflation) still outpaces food (4.0%) and makes up nearly two-thirds of inflation," the presentation stated.

The statistics service also flagged the domestic character of the price pressure. About 86% of Ghana's inflation comes from goods and services made inside the country.

"Inflation is now a home-grown, services story," the presentation added.

Inflation Almost Halved in a Year, But Edges Up

Iddrisu noted that inflation has almost halved over the past year, though it has started to creep up again after July's fall.

The September reading marks the second consecutive monthly rise, a signal that the disinflation trend that defined much of the past year has stalled.

Central Bank Holds Rate Again

The Bank of Ghana kept its main interest rate unchanged for the third meeting in a row in September, saying inflation was expected to move up into its 6% to 10% target band over the next few quarters.

That means policymakers are already working with the assumption that price pressures will build rather than cool in the near term. Holding the policy rate steady while inflation drifts upward leaves real borrowing costs tighter for businesses and households in the interim.

What It Means for the Region

Ghana is one of West Africa's largest economies and its monetary policy path is closely watched alongside Nigeria's. A rising inflation print in Accra, even from a low base, points to sticky domestic service costs rather than imported price shocks.

That is a familiar problem for Nigerian businesses, where food and services inflation have stayed stubborn despite headline moderation. For the naira and the cedi alike, the underlying message is that price stability is not yet secured, which limits room for aggressive rate cuts on either side of the border.