Ghana's annual inflation rate slowed for the eighth month in a row in August, reaching its lowest level since October 2021, the statistics service said on Wednesday.

Consumer inflation fell to 11.5% year on year from 12.1% in July.

Government statistician Alhassan Iddrisu told a press conference that both food and non-food prices eased last month. However, food prices remain the largest driver of inflation, he added.

"The steady drop in inflation is reassuring, but the monthly swings we are seeing remind us that we need to keep watch on inflation, particularly short-term movements," he told reporters.

The gold-, oil- and cocoa-producing nation is emerging from its most severe economic crisis in decades. The local cedi currency is up over 20% against the dollar so far this year.

Ghana's central bank slashed its key interest rate by 300 basis points to 25% in July, the largest cut in its history, showing its confidence in a progressive slowdown in prices.

Finance Minister Cassiel Ato Forson said earlier that month that officials were hopeful they could hit the year-end inflation target of 11.9% ahead of schedule.