Ghana’s Inflation Falls to 3.8%, Lowest Since 2021, as Disinflation Gains Momentum

Ghana’s disinflation drive has gathered fresh momentum, with headline inflation easing to 3.8 percent in January 2026  the lowest level since 2021 and marking the 13th consecutive month of decline, according to new data released by the Ghana Statistical Service (GSS). 

The January outturn represents a 1.6 percentage point drop from the 5.4 percent recorded in December 2025, reinforcing evidence that prices in the economy are rising at a much slower pace. 

On an annual basis, inflation has fallen by 19.7 percentage points from 23.5 percent in January 2025, underscoring the scale of Ghana’s ongoing economic stabilization after two years of elevated price volatility. 

Food inflation, which has been a key driver of cost-of-living pressures for households, also moderated further, dropping to 3.9 percent in January 2026 from 4.9 percent in December 2025. The slowdown reflects improved food supply and softer price increases across major staples. 

Similarly, non-food inflation declined sharply to 3.9 percent, down from 5.8 percent in the previous month, signaling easing cost pressures in housing, utilities, transport, and other key consumer categories. 

At the regional level, the Savannah Region recorded the lowest inflation at -2.6 percent, indicating a general decline in prices, while the North East Region posted the highest at 11.2 percent, highlighting persistent regional disparities. 

The sustained disinflation follows the Bank of Ghana’s decision to cut its policy rate by 250 basis points to 15.5 percent, a move that now appears well-aligned with emerging price stability trends and could shape expectations for future monetary policy actions. 

Speaking at a press briefing in Accra, Government Statistician Dr. Alhassan Iddrisu commended progress in taming inflation and urged the government to maintain fiscal discipline to sustain the downward trajectory. 

“It is important that ongoing fiscal consolidation efforts are maintained to complement monetary policy and ensure that disinflation remains firmly anchored,” Dr. Iddrisu said. 

Economists say Ghana’s return to single-digit inflation marks a critical milestone in restoring macroeconomic stability and rebuilding consumer confidence after a turbulent period of global and domestic shocks.