Inflation drops to 3.8%, lowest in 5 years

Ghana’s headline inflation rate fell sharply to 3.8 per cent in January 2026, the lowest recorded since the rebasing of the Consumer Price Index (CPI) in 2021 and the 13th consecutive month of decline, the Ghana Statistical Service (GSS) announced yesterday.

The latest figures, presented by the Government Statistician, Dr Alhassan Iddrisu, show the CPI rose to 262.3 points in January 2026 from 252.6 points in January 2025, translating into a year-on-year inflation rate of 3.8 per cent, a 19.7 percentage point drop from the 23.5 per cent recorded in January last year.

Compared to December 2025’s inflation of 5.4 per cent, this represents a 1.6 percentage-point month-on-month drop.

Food, non-food inflation converge

Both food and non-food inflation eased to 3.9 per cent in January, down from 4.9 per cent and 5.8 per cent respectively in December 2025.

However, month-on-month data revealed a slight increase in food prices by 1.1 per cent, while non-food prices dipped by 0.4 per cent.

A detailed breakdown of the CPI basket showed stark contrasts in price movements.

While items such as garden eggs and fresh tomatoes saw prices fall by 58.7 per cent and 42.5 per cent respectively, essentials such as charcoal and green plantain recorded steep increases of 53.7 per cent and 67.9 per cent year-on-year.

Regional disparities

Despite the national decline, inflation varied widely across regions.

The North East Region recorded the highest rate at 11.2 per cent, while the Savannah Region experienced deflation at -2.6 per cent.

The GSS attributed these gaps to differences in “local supply, transport costs, and market access.”

The Greater Accra and Ashanti regions, which together account for nearly half of the national consumption basket, recorded modest inflation rates of 3.0 per cent and 4.0 per cent, respectively.

Imported vs locally produced goods

Inflation for locally produced items fell to 4.5 per cent, while that for imported items eased to 2.0 per cent.

This indicates that domestic cost pressures are now a more significant driver of price changes than imported inflation, a shift from previous trends.

Inflation for goods also slowed to 3.6 per cent from 5.8 per cent in December, while services inflation moderated to 4.0 per cent from 4.5 per cent.

Month-on-month, services prices rose by 0.3 per cent, while goods prices remained stable.

Policy implications, outlook

Economists say the continued disinflation could provide room for monetary policy easing and reinforce business and consumer confidence.

The GSS, in its report, recommended that the government “sustain fiscal discipline” and “invest in storage, irrigation, transport, and market access to reduce regional disparities.”

For households, Dr Iddrisu advised that “this is a good time to plan budgets with greater confidence, prioritise essentials, avoid non-essential spending, and save where possible.”