Ghana’s consumer inflation fell to 3.8 percent in January 2026, marking the 13th consecutive monthly decline and the lowest rate since the rebasing of the Consumer Price Index in 2021.
The Ghana Statistical Service (GSS) announced on Wednesday that year-on-year inflation dropped from 5.4 percent in December 2025, representing a 19.7 percentage point decline from the 23.5 percent recorded in January 2025.
Government Statistician Dr. Alhassan Iddrisu said the sustained easing reflects improving price dynamics across key economic segments, particularly goods, food and locally produced items. The softer inflation backdrop supported a recent policy shift, with the Bank of Ghana cutting its benchmark rate by 250 basis points to 15.50 percent to support growth.
On a month-on-month basis, overall prices increased marginally by 0.2 percent between December 2025 and January 2026 compared to a 0.9 percent increase recorded in the previous month, indicating subdued short-term price movements.
Food inflation declined to 3.9 percent year-on-year in January from 4.9 percent in December, although food prices rose by 1.1 percent month-on-month. Non-food inflation also eased sharply, falling to 3.9 percent from 5.8 percent with prices in this category declining by 0.4 percent over the month.
The slowdown was more pronounced in goods inflation, which fell to 3.6 percent year-on-year from 5.8 percent, offering relief to consumers as goods account for nearly three-quarters of the Consumer Price Index (CPI) basket. Services inflation also moderated to 4.0 percent, down from 4.5 percent, though service prices rose by 0.3 percent month-on-month.
Inflation for locally produced items declined to 4.5 percent for January from 5.9 percent in December, while inflation on imported items dropped more sharply to 2.0 percent from 4.3 percent, reflecting improved external price conditions and relative currency stability.
Despite the national slowdown, regional disparities persisted. North East Region recorded the highest inflation rate at 11.2 percent while Savannah Region posted the lowest at minus 2.6 percent. According to GSS, differences in local supply conditions, transport costs and market access continue to drive uneven inflation outcomes across regions.
Among the major contributors to inflation, items such as charcoal, green plantain, smoked herrings, ginger, vegetable oil and accommodation services recorded relatively high price pressures, while prices of several fresh food items, including garden eggs, tomatoes, okro and pawpaw, declined significantly, helping to moderate overall inflation.
GSS noted that easing inflation creates room for households to plan budgets with greater confidence, prioritise essential spending and increase savings. For businesses, the current environment presents opportunities to invest in efficiency, strengthen local supply chains and stabilise prices.
The Service urged government to sustain fiscal discipline, continue efforts to stabilise food prices and invest in storage, irrigation, transport infrastructure and market access to reduce regional price disparities and consolidate the inflation gains.
