By Francis Kobena Tandoh
Headline inflation for January 2026 dropped to 3.8 percent, the lowest recorded in nearly thirty years, according to the Ghana Statistical Service (GSS).
The January inflation marks the 13th consecutive monthly decline since the 2021 rebasing of the Consumer Price Index (CPI), signaling broad-based easing of price pressures across both food and non-food categories.
Compared to December 2025’s 5.4 percent, this represents a 1.6 percentage-point month-on-month drop, while year-on-year inflation fell from 23.5 percent in January 2025 to 3.8 percent, reflecting the significant disinflationary correction after two years of elevated price pressures.
Food inflation, the most immediate concern for households, slowed to 3.9 percent from 4.9 percent in December, while non-food inflation fell sharply to 3.9 percent from 5.8 percent, showing that price easing is occurring across key sectors.
Regionally, the picture is mixed: the Savannah Region recorded the lowest inflation at -2.6 percent, reflecting outright price declines, while the North East Region posted the highest at 11.2 percent, highlighting persistent local disparities.
The latest reading comes weeks after the Bank of Ghana cut its policy rate by 250 basis points to 15.5 percent, a move intended to lower borrowing costs and stimulate economic activity.
This historic low could set the stage for further easing at upcoming Monetary Policy Committee (MPC) meetings.
While the disinflation supports lower rates, policymakers remain attentive to exchange rate pressures, global commodity fluctuations, and fiscal risks to avoid overshooting the target.
The January 2026 print not only signals a return to stable prices unseen since the late 1990s, but also provides critical guidance for businesses, investors, and households as Ghana navigates its economic strategy for the year ahead.
It would be recalled that in August 1999, Ghana recorded a 1.4 percent increase, while in September of the same year, inflation was 4.4 percent. Enditem
Source: Ghana Eye Report
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