IMF credits cedi’s surge for Ghana’s inflation drop
Ghana’s sharp drop in consumer prices stems from the cedi’s remarkable turnaround after a period of severe weakening that had driven up costs throughout the economy. The International Monetary Fund said the local currency gained 37 percent against the dollar through mid-October, helping push the inflation rate down to 9.4 percent in September from 24 percent a year earlier.
Adrian Alter, the fund’s representative in the West African nation, told Channel One TV that exchange rate shifts heavily influence price trends across the continent. He said roughly one-fifth of a currency decline typically feeds through to inflation via imported products. Ghana experienced this dynamic in 2024 when the cedi tumbled and drought reduced food supplies, but the pattern has reversed as the currency strengthened.
The World Bank recognized the cedi as sub-Saharan Africa’s top performer during the first eight months of 2025. Alter credited tighter fiscal management and consistent central bank policy for anchoring expectations and restoring investor confidence. He said maintaining the currency’s stability will be essential for sustaining economic recovery and keeping prices under control over the long term.
