Ghana’s inflation rate fell sharply to 3.8 percent in January 2026, marking the lowest level recorded in almost 27 years and extending the country’s disinflation trend.
The latest figures show a continued easing of price pressures across the economy, with both food and non-food categories recording slower increases. For comparison, inflation last reached similarly low territory in 1999, when rates fluctuated between 1.4 percent and 4.4 percent.
January’s rate represents a 1.6 percentage-point drop from December 2025’s 5.4 percent. On a year-on-year basis, inflation has fallen significantly from 23.5 percent in January 2025 to the current 3.8 percent, underscoring a strong correction after two years of elevated prices.
This also marks the 13th straight monthly decline since the 2021 rebasing of the Consumer Price Index, pointing to broad-based stability in consumer prices.
Key Drivers of the Slowdown
- Food inflation eased to 3.9 percent, down from 4.9 percent in December
- Non-food inflation dropped to 3.9 percent from 5.8 percent
- Price moderation was observed across several major consumption groups
Regional Variations
Inflation trends differed across regions:
- Savannah Region recorded the lowest rate at -2.6 percent, indicating actual price declines
- North East Region posted the highest rate at 11.2 percent, reflecting continued local price pressures
Policy Outlook
The new inflation reading comes shortly after the Bank of Ghana reduced its policy rate by 250 basis points to 15.5 percent, aimed at lowering borrowing costs and supporting economic activity.
Analysts say the sustained slowdown in inflation could open the door for further rate cuts at upcoming Monetary Policy Committee meetings. Still, policymakers are expected to watch exchange rate movements, global commodity prices, and fiscal developments closely to keep inflation within target.
For businesses, investors, and households, the latest data signals a period of price stability not seen since the late 1990s and could shape economic decisions in the months ahead.