Headline inflation drops to 5.3% as borrowing costs ease

Headline inflation eased to 5.3% in June 2026, staying within the Bank of Ghana’s target range as the cedi gained value against major currencies and interest rates declined.

According to the central bank’s latest report released on July 21, 2026, core inflation fell to 5.0%, while food inflation slowed to 3.9% and non‑food inflation stood at 6.3%.

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Monthly headline inflation was recorded at just 0.2%, signaling continued price stability.

The cedi maintained its appreciation against major currencies, trading at GH¢11.55 to the US dollar in July. Year‑to‑date, the local currency has gained 9.5% against both the dollar and the British pound, and 7.1% against the euro.

The improved macroeconomic environment has also been reflected in domestic interest rates.

The average lending rate dropped to 15.6% in June, while the Ghana Reference Rate (GRR) fell to 10.0%.

The Monetary Policy Rate remained unchanged at 14.0%.

Treasury bill rates also remained relatively low, with the 91-day bill at 5.3%, the 182-day bill at 7.2% and the 364-day bill at 11.3%.

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The latest data reinforce the central bank’s assessment that inflationary pressures continue to ease amid improving exchange rate stability and moderating financing costs.

DR/SA