The June inflation figure showed the fourth consecutive fall in inflation since February.

Statistical service official Grace Bediako said Ghana continued to maintain single-digit inflation but noted that food inflation was falling, while underlying non-food inflation had actually risen.

The Bank of Ghana cut its prime interest rate by 50 basis points to 12.50 percent last week, reaffirming its view that annual inflation was on target to remain around nine percent by year-end.  The move came despite statements from the International Monetary Fund since December's launch of commercial oil production that Ghana should be ready to tighten monetary policy, citing inflationary risks from global commodity prices and strong domestic growth.

But analysts were upbeat about the latest fall.

"This sets the impulse for Ghana's inflation to further decline to the region of 7 percent and 8 percent in the third quarter," said Sampson Akligo of Accra-based Databank Financial Services.

"I think for the first time, market expectations may begin to realign themselves to the sustainability of the ongoing disinflation." Some analysts have questioned whether the bank was underestimating underlying inflationary pressures, given the possibility of food price hikes and 23-percent economic growth year-on-year in the first quarter, but on Wednesday said the latest figures supported the bank's decision.

"The 31 basis points drop in annual inflation to 8.59 percent ... buttresses the MPC's decision to reduce the monetary policy rate by 50 basis points earlier this month," said Jacob Brobbey of Barclays Ghana.

Market take-up for an auction of five-year bonds due at the end of July is seen as a key test of investors' view of the economy. Aside from oil, Ghana has benefited from a bumper cocoa season so far with a total crop already topping 940,000 tons, well ahead of the previous full-season record of 740,000 tons.