Ghana’s disinflationary trend deepened in January 2026, with headline inflation easing to 3.8 percent, the lowest recorded in nearly 27 years.
For context, August 1999 recorded 1.4 percent, while September 1999 was 4.4 percent, illustrating just how rare such low inflation readings are in modern Ghanaian history.
The January print also marks the 13th consecutive monthly decline since the 2021 rebasing of the Consumer Price Index, 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.
