Ghana’s consumer inflation rate eased to 3.8 percent in January 2026, declining 1.6 percentage points from December’s 5.4 percent and marking the lowest level since the Consumer Price Index (CPI) was rebased in 2021, according to data released Wednesday by the Ghana Statistical Service (GSS).
The January reading represents the 13th consecutive monthly decline in inflation and a 19.7 percentage point reduction from the 23.5 percent recorded in January 2025, signaling sustained progress toward price stability following years of elevated inflation pressures, Government Statistician Dr. Alhassan Iddrisu stated during a press briefing in Accra.
Food inflation declined to 3.9 percent in January from 4.9 percent in December, reflecting improved supply conditions and softer price movements for key staples. Non-food inflation fell sharply to 3.9 percent from 5.8 percent the previous month, driven by price reductions in items including petrol, diesel, gas, charcoal, and baby products, according to the statistical service.
The Consumer Price Index stood at 262.3 in January 2026, up from 252.6 recorded in January 2025, but the pace of price changes moderated considerably. On a month to month basis, overall prices increased marginally by 0.2 percent between December 2025 and January 2026, down from a 0.9 percent increase recorded the previous month, indicating subdued short term price movements.
Goods inflation slowed to 3.6 percent year on year, while services inflation eased to 4.0 percent. The slowdown in goods inflation proved particularly significant because goods constitute nearly three quarters of the CPI basket, providing substantial relief to consumers facing cost pressures across essential categories.
Inflation for locally produced items declined to 4.5 percent in January from 5.9 percent in December, while inflation on imported items dropped sharply to 2.0 percent from 4.3 percent, reflecting exchange rate stability, easing global price pressures, and improved alignment between domestic and international markets, Iddrisu explained.
Regional inflation outcomes varied significantly across the country. The North East Region recorded the highest rate at 11.2 percent, while the Savannah Region posted the lowest at negative 2.6 percent, indicating outright price declines. Authorities attribute these disparities to differences in local supply conditions, transport costs, and market access.
Among major contributors to inflation, charcoal, green plantain, smoked herrings, ginger, vegetable oil, accommodation services, and cinema and cultural services recorded relatively high price pressures. Prices of several fresh food items including garden eggs, tomatoes, okro, and pawpaw declined significantly, helping moderate overall inflation.
The sustained disinflation comes weeks after the Bank of Ghana (BoG) cut its policy rate by 250 basis points to 15.5 percent in late January, a move aligned with emerging price trends that could shape expectations ahead of future monetary policy decisions. Since July 2025, the central bank has reduced its main lending rate by a cumulative 12.5 percentage points, making borrowing cheaper for businesses and households.
The steady drop in inflation from 23.5 percent in January 2025 to 3.8 percent in January 2026 demonstrates a sustained shift in prices and signals that Ghana is firmly on the path to macroeconomic stability, Iddrisu emphasized. The current rate falls within the Bank of Ghana’s target range of 8 percent with a tolerance band of plus or minus 2 percentage points.
Ghana’s inflation had surged to a record 54.1 percent in December 2022 during the height of the country’s economic crisis before beginning a gradual descent. The rate closed 2023 at 23.2 percent and reached single digits for the first time since August 2021 when it fell to 9.4 percent in September 2025.
The statistical service urged government to sustain fiscal discipline, continue efforts to stabilize food prices, and invest in storage, irrigation, transport infrastructure, and market access to reduce regional price disparities and consolidate the inflation gains achieved over the past year.
