Inflation Drops to 3.8%

Ghana’s headline inflation rate has plummeted to 3.8 per cent in January 2026, marking the thirteenth consecutive monthly decline and representing the lowest rate of price growth recorded since the statistical rebasing of the Consumer Price Index (CPI) in 2021.

The figure, released by Government Statistician Dr. Alhassan Iddrisu today, signifies a dramatic 19.7 percentage point drop from the 23.5 per cent inflation experienced just one year prior in January 2025.

The data reveals that while the overall trend signals a firm move towards price stability, the cost pressures for ordinary Ghanaians are unevenly distributed. A deep dive into the components shows that food inflation and non-food inflation have converged at 3.9 per cent year-on-year.

The items exerting the most significant upward pressure on the national index were charcoal, with a year-on-year inflation of 53.7 per cent, and green plantain, at 67.9 per cent. Conversely, consumers found relief in items like garden eggs and fresh tomatoes, which saw prices fall by 58.7 per cent and 42.5 per cent respectively.

The North East Region recorded the highest regional inflation rate at 11.2 per cent, while the Savannah Region experienced deflation, with prices falling by 2.6 per cent. The Ghana Statistical Service noted that “local supply, transport costs, and market access could be driving these gaps.”

The report also highlights a crucial shift in the source of price pressures. Inflation for locally produced items has fallen to 4.5 per cent, a sharper slowdown compared to imported items, which saw inflation ease to 2.0 per cent. This suggests that domestic supply chains and production costs are becoming a more significant relative factor.

With the month-on-month inflation rate at a minimal 0.2 per cent, the statistical service concluded that “the steady drop in inflation from 23.5% in Jan 2025 to 3.8% in January 2026 shows a sustained shift in prices that signals Ghana is firmly on the path to macroeconomic stability.”

Source: Graphic

Click to read more: https://opemsuo.com/author/hajara-fuseini/