Ghana’s inflation rate fell more than expected in July, bolstering the case for further interest-rate cuts.

Annual inflation slowed to 12.1% in July, compared with 13.7% in the previous month, Government Statistician Alhassan Iddrisu told reporters in the capital, Accra, on Wednesday. The median estimate of five economists in a Bloomberg survey was 12.4%. Prices rose 0.7% in the month, he said.

Africa’s biggest gold producer and the world’s second-largest cocoa grower is benefiting from a surge in the prices of the commodities, which have fuelled a 39% rally in the cedi this year that’s helped rein in inflation.

The disinflation may persuade the Bank of Ghana’s monetary policy committee to lower rates further next month, after a 300 basis-point cut to 25% last week.

Governor Johnson Asiama said after announcing the decision that the MPC would “continue to assess incoming data and likely reduce the policy rate further should the disinflation trend continue.”

It expects inflation to return to its 6%-to-10% target range by year-end , compared with an earlier target of end-March 2026.

Food inflation decelerated to 15.1% in July from 16.3% a month earlier and non-food price growth eased to 9.5% from 11.4% the month before.