Inflation slows to 3.3% in Feb, extends 14-month decline

By Juliet ETEFE

Year-on-year inflation eased further to 3.3 percent in February 2026, marking the 14th consecutive month of decline and lowest rate recorded since the 2021 Consumer Price Index (CPI) rebasing, according to the Ghana Statistical Service (GSS).

The latest figure represents a 0.5 percentage-point drop from 3.8 percent recorded for January 2026 and a sharp 19.8 percentage-point decline from the 23.1 percent registered in February 2025.

On a month-on-month basis, inflation stood at 0.8 percent – indicating that the general price level rose by less than one percent between January and February 2026.

GSS noted that the steady decline from 23.1 percent in February 2025 to 3.3 percent in February 2026 signals a sustained moderation in price pressures and a firm path toward macroeconomic stability.

The moderation in inflation comes as the Bank of Ghana’s Monetary Policy Committee (MPC) notes that macroeconomic conditions have improved significantly, supported by a tight monetary policy stance, fiscal consolidation and a build-up of reserves.

In its 128th meeting, the MPC highlighted that inflation has declined faster than anticipated, expectations remain well anchored and GDP growth has strengthened. While acknowledging potential risks from utility price adjustments and commodity market volatility, the Committee indicated that headline inflation is expected to remain within the medium-term target.

The MPC also lowered its policy rate by 250 basis points to 15.5 percent, signalling a gradual shift from price containment toward supporting real-sector recovery, job creation and sustainable growth.

Food and non-food trends

Food inflation, which carries a weight of 42.7 percent in the CPI basket, fell sharply to 2.4 percent in February from 3.9 percent in January. On a month-on-month basis, food prices increased marginally by 0.2 percent – down from 1.1 percent in the previous month.

The food division contributed 1.02 percentage points to overall inflation, approximately 30 percent of the headline rate. With the exception of ready-made food and a few sub-classes, most food categories recorded declining year-on-year inflation.

In contrast, non-food inflation edged up to 4.0 percent from 3.8 percent in January and accounted for 2.3 percentage points – about 70 percent – of total inflation. Month-on-month, non-food prices rose by 1.2 percent – suggesting that inflationary pressures are becoming more concentrated in selected non-food items.

Goods and services

Further disaggregation shows goods inflation slowed to 3.2 percent in February from 3.7 percent in January. Goods, which make up 72.5 percent of the CPI basket, contributed roughly 70 percent of overall inflation and recorded a 0.94 percent month-on-month increase.

Services inflation moderated to 3.7 percent from 4.2 percent in January, contributing about 30 percent to headline inflation. Month-on-month services inflation stood at 0.3 percent.

Local and imported

Inflation for locally produced items declined slightly to 4.5 percent from 4.6 percent in January and accounted for the overwhelming share of total inflation.

Imported inflation however dropped sharply to 0.6 percent from 2.0 percent in January, reflecting improved exchange rate stability and easing external price pressures.

Five regions drive over 90%

Regional inflation patterns remained uneven. North East Region recorded the highest year-on-year inflation rate at 8.9 percent, though this was down from 11.2 percent in January. However, due to its relatively small weight in the CPI basket, the region contributed only about 2 percent to national inflation.

Savannah Region recorded the lowest inflation rate at negative 5.6 percent, indicating a decline in prices compared to February 2025.

Greater Accra, with a 4.8 percent inflation rate, contributed the largest share of national inflation at 41.5 percent, followed by Ashanti (3.7 percent inflation; 24 percent contribution), Eastern (6.2 percent; 19.2 percent), Volta (5.4 percent; 7.3 percent) and Central (2.4 percent; 6.3 percent).

Together, these five regions accounted for over 93 percent of total inflation.

Key drivers by division and items

By division, housing, water, electricity, gas and other fuels emerged as the largest driver of inflation, contributing about 39 percent of the headline rate.

Food and non-alcoholic beverages followed with roughly 31 percent, while education services and recreation, sport and culture accounted for 14 percent and 11 percent respectively.

Transport exerted a negative contribution, helping to moderate the overall inflation rate.

At the item level, charcoal (15.5 percent contribution), green plantain (14.8 percent), cinema and cultural services (8.9 percent), public and private secondary school fees (8.5 percent) and river fish (7.8 percent) together accounted for more than half of total inflation.

The highest year-on-year price increases were recorded for green plantain (67.9 percent), ginger (59.1 percent), shrimps (58.1 percent), charcoal (53.1 percent) and crab (46.9 percent).

Conversely, garden eggs, pawpaw, fried fish, kontomire and fresh okra registered steep declines, helping to offset upward price pressures.

Outlook

GSS indicated that sustaining the disinflation trend will require continued fiscal discipline, efforts to stabilise food supply conditions and targetted investments in storage, irrigation, transport and market access to address regional disparities.

With inflation easing and imported price pressures significantly reduced, the data suggest that price stability is strengthening – although pockets of pressure remain in specific non-food divisions and high-weight urban regions.

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