Ghana’s inflation falls to 3.8% as disinflation deepens

Ghana’s inflation rate has declined further, settling at 3.8 per cent in January 2026, marking the lowest level recorded since 2021 and extending the country’s disinflation streak to thirteen consecutive months.

The latest figures, released by the Ghana Statistical Service (GSS), show a significant easing in price pressures, reinforcing signs of stabilisation after a prolonged period of high inflation.

The January figure represents a sharp 1.6 percentage point reduction from the 5.4 per cent recorded in December 2025, reflecting a continued slowdown in the pace of price increases across the economy.

Speaking at a press briefing in Accra, the Government Statistician, Dr Alhassan Iddrisu, urged government to maintain its fiscal consolidation efforts as inflation continues to moderate.

On an annual basis, the improvement is even more striking. Inflation has dropped by 19.7 percentage points compared to the 23.5 per cent recorded in January 2025, highlighting the scale of the correction following nearly two years of sustained price volatility.

Food inflation, which has remained a major source of pressure on household budgets, also softened during the period. The food inflation rate declined to 3.9 per cent in January 2026 from 4.9 per cent in December 2025, largely driven by improved supply conditions and moderated price movements among key staples.

Non-food inflation mirrored this downward trend, easing sharply to 3.9 per cent from 5.8 per cent in the previous month. This suggests a broad-based reduction in cost pressures across major expenditure categories, including housing, transport, utilities and other consumer services.

However, regional inflation patterns continue to show notable disparities. The Savannah Region recorded the lowest inflation rate at negative 2.6 per cent, indicating a decline in average prices, while the North East Region posted the highest inflation at 11.2 per cent, underscoring uneven price dynamics across the country.

The sustained disinflation comes shortly after the Bank of Ghana reduced its monetary policy rate by 250 basis points to 15.5 per cent, a move that now appears consistent with prevailing price trends and may influence future policy decisions.