Ghana’s inflation fell to 8% in October 2025, the lowest level since early 2020, after peaking at 23.8% in December 2024.
The Ghana Statistical Service reported a ninth consecutive month of reduction, signalling policy successes and economic stabilisation. However, respite appears to be a long way off for consumers and businesses.
Market prices, transport fares and operating costs remain high; inflation has only slowed, not reversed. Prices are not declining; they are rising less aggressively. This illusory peace comes after years of turbulence. Liquidity remains tight, and the high cost of living continues.
As a business coach with nearly 20 years’ experience guiding firms through similar cycles in Ghana and beyond, I agree that falling inflation inspires confidence, but survival requires strategy.
To succeed in an environment where numbers improve but reality bites, business managers must grasp why expenses remain sticky and react by reducing operations, renegotiating supply chains, and focusing on resilient revenue streams. I have explored why inflation is falling yet our bills are not.
The Import Curse We Cannot Break
In 2024, the Ghanaian cedi fell by 25% against major currencies. Although foreign reserves are recovering through gold swaps, the repercussions of the depreciation continue.
Ghana imports more than 40% of its goods, including factory machinery and boutique fabrics. Even if inflation falls, a weaker cedi raises the price of these goods in local currency. According to a poultry sector client, “Feed prices dropped 3%, but the U.S. maize supplier raised quotes by 10% due to currency risks.”
Importers are paying greater prices, and declining inflation has not yet countered these increases.
Transport and utility costs remain high
Even when inflation slows, transport and electricity costs rarely revert. Fuel prices may level out, but taxes, levies and infrastructure expenditures remain high. If your products rely substantially on logistics, such as food delivery, retail or manufacturing, you will still bear the burden of high transport costs.
Optimise delivery routes and logistics alliances. Consider shared transportation models with other businesses. If possible, relocate operations closer to key markets or suppliers to reduce distance-related costs.
Consumer confidence and purchasing power remain low
While inflation is reducing, real incomes have not kept up. Many Ghanaians remain cautious about spending since their incomes do not go as far as they once did.
The middle class, which formerly supported many SMEs with consistent purchases, is still recovering. Consumers are now more sceptical of prices, preferring cheaper or smaller solutions. Segment your market and provide “value-for-money” versions of your products.
Concentrate on consumer loyalty rather than one-off sales. Introduce payment options such as mobile money instalments, loyalty discounts and referral programmes.
People slowly adjust to economic changes
Inflation impacts not only wallets, but also mentality. Despite improving economic data, both consumers and business owners become cautious and sceptical. The “inflation hangover” has slowed consumption and investment.
People still believe prices are high because they remember the pain of rapid inflation. This mood influences purchasing behaviour even when macroeconomic conditions improve. Rebuild customer trust by explaining prices, providing consistent quality, and demonstrating empathy.
Tell your company’s story, including why your brand remains trusted in the face of adversity. Create experiences rather than just products; small acts of service or surprise bonuses can help clients feel appreciated again.
What business owners should remember
Falling inflation is excellent news, as it implies the economy is stabilising and confidence can begin to return. However, it is not an automatic solution. As a business owner, you must be vigilant, nimble and adaptable.
Now is the time to:
- Rebuild efficiency by auditing costs, streamlining operations, and implementing simple technology solutions.
- Prioritise customer connections, as loyalty is increasingly valuable.
- Plan for growth, not simply survival: as stability improves, position your organisation to capitalise on opportunities early.
Strategic, data-driven and customer-centred firms will be rewarded over the next 12 months. Ghana’s economy is adjusting, and those who prepare now will succeed tomorrow.
Conclusion
Ghana’s inflation rate has fallen to 8%, a significant milestone that signals hope. However, for business owners, the path to full recovery takes more than optimism. It requires understanding the causes that keep prices high and proactively adjusting to them.
In this new period of economic stabilisation, entrepreneurs must transition from reaction to preparedness, from simply surviving inflation to mastering post-inflationary business strategy. While costs remain high, so do the chances for those willing to think outside the box, lead fearlessly, and rebuild with purpose.
Dr Andrews Ayiku
Senior Lecturer / SME Industry Coach
Coordinator (MBA Impact Entrepreneurship and Innovation)
University of Professional Studies, Accra
ayiku.andrews@upsamail.edu.gh
IG: andy_ayiku
@AndrewsAyiku
FB: Andyayiku
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