Ghana recorded a major milestone in its economic recovery as inflation fell to 3.8 per cent in January 2026, the lowest level since the rebasing of the Consumer Price Index (CPI) in 2021 and the 13th consecutive month of decline.
According to the latest CPI and Inflation report released by the Ghana Statistical Service, the January figure represents a sharp drop from 5.4 percent in December 2025 and a dramatic fall from 23.5 percent recorded in January 2025.
Presenting the data on February 4, 2026, Government Statistician Alhassan Iddrisu said the sustained disinflation trend reflects improving macroeconomic conditions and easing price pressures across key sectors of the economy.
On a month-on-month basis, inflation slowed to 0.2 percent, compared with 0.9 percent in December, indicating relative price stability at the start of the year.
Food and Non-Food Prices Ease
The report showed a broad-based moderation in prices. Food inflation declined to 3.9 per cent in January from 4.9 per cent in December, even though food prices rose marginally by 1.1 per cent over the month. Non-food inflation eased more sharply, falling from 5.8 percent to 3.9 percent, with prices contracting by 0.4 percent month-on-month.
Inflation for locally produced items dropped from 5.9 percent to 4.5 percent, while imported inflation fell to 2.0 percent, underscoring reduced external price pressures and improved domestic supply dynamics.
Regional Disparities Persist
Despite the national improvement, inflation levels varied significantly across regions. The North East Region recorded the highest year-on-year inflation rate at 11.2 percent, while the Savannah Region posted the lowest rate at –2.6 percent, reflecting declining prices in that part of the country.
Implications for Households and Businesses
The Ghana Statistical Service said the easing inflation environment provides room for households to plan budgets with greater certainty, prioritise essential spending, and increase savings. Businesses, on the other hand, are encouraged to invest in efficiency, strengthen local supply chains, and translate cost savings into stable consumer prices.
The Service also advised government to sustain fiscal discipline and intensify investments in food storage, irrigation, transport infrastructure, and market access to reduce regional price disparities and consolidate the gains made so far.
With inflation now at single-digit low, analysts say the figures reinforce confidence that Ghana is firmly back on a path of macroeconomic stability—though continued discipline will be key to sustaining the progress.
