The Bank of Ghana has reported that its confidence surveys conducted in August 2026 reflected positive consumer and business sentiments. This positivity is attributed to the relatively stable macroeconomic environment and optimism about growth prospects. The Bank of Ghana's Governor, Dr. Johnson Asiama, has overseen the implementation of policies that have contributed to this stability.
According to the Central Bank, the updated Composite Index of Economic Activity (CIEA) recorded a strong annual growth of 14.9% in July 2026, compared to 6.1% in July 2025. This significant growth is an indication of the improving economic conditions in Ghana. The CIEA is a key indicator of the country's economic performance, and its growth suggests that the economy is on an upward trajectory.
The improvement in the CIEA is attributed to key indicators such as credit to the private sector, international trade activities, and consumption of goods and services. These indicators have contributed to the overall growth of the economy, reflecting a positive trend in business and consumer activities. The Bank of Ghana's policies have likely played a role in this improvement.
Headline inflation increased to 5.0% in August 2026 from 4.6% in July 2026, driven mainly by non-food inflation. Non-food inflation rose to 6.8% from 6.1% in July, largely due to some pass-through effects from the upward adjustments in utility tariffs and elevated crude oil prices. This increase in inflation may have implications for consumer purchasing power and business operations.
In contrast, food inflation has remained low and declined marginally to 3.0%, from 3.1% on the back of improved food supply conditions. This decline in food inflation is a positive development, as it suggests that food prices are stable, and consumers are likely to benefit from this stability. The Bank of Ghana's efforts to ensure food security and stability in food prices are likely to have contributed to this outcome.
Despite the increase in headline inflation, the Bank of Ghana said it remained below the lower bound of the medium-term target range of 8 ± 2%. This suggests that the Bank of Ghana's inflation-targeting policies are effective, and the current inflation rate is within a manageable range. The Bank of Ghana will likely continue to monitor inflation and adjust policies as needed to maintain price stability.
The positive consumer and business sentiments are also reflected in other economic indicators, such as the average lending rate, which stood at 15.9% as of August 2026. Additionally, total mobile money transactions value hit GH¢3.8 trillion as of August 2026, indicating a growing use of digital payment systems. Ghana's reserve buffer has, however, shrunk to 4.2 months, and the cedi has depreciated by 9.5% in nine months of 2026.
Key points
- The Bank of Ghana's confidence surveys reflected positive consumer and business sentiments in August 2026.
- The Composite Index of Economic Activity (CIEA) recorded a strong annual growth of 14.9% in July 2026.
- Headline inflation increased to 5.0% in August 2026, driven mainly by non-food inflation.
