Inflation falls to 3.8%, as price pressures ease for 13th straight month

By Juliet ETEFE

Consumer inflation rate fell further to 3.8 percent in January 2026, marking the 13th consecutive month of decline and its lowest level since the rebasing of prices in 2021, according to the Ghana Statistical Service (GSS).

The latest Consumer Price Index (CPI) data show a sharp moderation in price pressures, with year-on-year inflation dropping from 5.4 percent in December 2025 and down by 19.7 percentage points from the 23.5 percent recorded in January 2025.

The sustained slowdown signals a strengthening return to macroeconomic stability after a prolonged period of elevated inflation.

Presenting the January 2026 CPI and Inflation Report in Accra, Government Statistician Dr. Alhassan Iddrisu said the consistent easing of inflation reflects improving price dynamics across key segments of the economy, particularly goods, food and locally produced items.

The softer inflation backdrop supported a 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 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.

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