Ghana has reached a major economic turning point. Its year-on-year inflation for January 2026 dropped to 3.8% and it’s a substantial decline from the 5.4% recorded in December 2025. The new rate is also the 13th consecutive monthly decrease and represents the lowest inflation rate since the price rebasing exercise in 2021.
The current 3.8% rate highlights a 19.7 percentage point drop from the 23.5% inflation recorded in January 2025. On a month-on-month basis, the general price level between December 2025 and January 2026 increased by only 0.2%.
This slowing momentum suggests that the rapid price escalations seen in previous years are being replaced by a more predictable inflationary environment.
The data as released by the Ghana Statistical Service shows that goods which account for three-quarters of the CPI basket) saw inflation slow to 3.6%.
Meanwhile, services inflation eased to 4.0%. Notably, the cooling of prices was most evident in imported items, where inflation plummeted from 4.3% in December to 2.0% in January, while locally produced items saw a more moderate decline from 5.9% to 4.5%.
Food and Non-Food Dynamics
Both food and non-food sectors converged at a year-on-year inflation rate of 3.9% for January 2026. Food inflation saw a one-percentage-point drop from December’s 4.9%, though month-on-month food prices did rise by 1.1%.
Within the food category, several staples experienced significant price variations. Items such as Ginger (72.3%), Green Plantain (67.9%), and Palm Fruits (41.4%) remained high-inflation outliers.
Conversely, several fresh produce items recorded negative inflation (deflation), including Garden Eggs (-58.7%), Fried Fish (-50.7%), and Fresh Tomatoes (-42.5%), which helped pull down the overall average.
In the non-food sector, inflation eased from 5.8% in December to 3.9% in January, with prices actually decreasing by 0.4% on a month-on-month basis.
The Housing, Water, Electricity, Gas, and Other Fuels division remains a primary driver with a 9.3% year-on-year rate, contributing significantly to the overall index despite a month-on-month price dip of -0.4%.
In contrast, the Transport division recorded a year-on-year deflation of -5.9%, acting as a major anchor in keeping the headline rate low.
Regional Disparities
Inflationary pressures remain unevenly distributed across Ghana’s 16 regions. The North East Region recorded the highest inflation rate at 11.2%, while the Savannah Region experienced deflation at -2.6%. These gaps are likely driven by variations in local supply chains, transport costs, and market access.
The top five regions contributing to overall inflation Greater Accra (22.5%), Ashanti (22.1%), Eastern (18.7%), Western (9.6%), and Volta (9.1%)account for 82.0% of the total inflationary pressure.
At the commodity level, a small group of items continues to exert outsized influence. Ten items alone contribute 78.6% to the overall inflation rate. Specifically, Charcoal (53.7%), Green Plantain (67.9%), and Smoked Herrings (12.4%) are the leading individual contributors to the price index.
Other notable contributors include ready-made food items like Cooked Rice (7.3%) and essential services such as Secondary School Fees (6.1%).
While this is good news for the economy, the food basket tells another story. Some items are becoming much cheaper, while a few staples remain very expensive.
High prices
Even though overall food prices are rising much more slowly at 3.9%, certain items have seen significant price hikes over the last year. Green plantains are the biggest worry for many households, with prices jumping by 67.9% since last January. Other high-impact food items that drove the January rate included:
1. Ginger: Saw the highest individual price surge among major items at 72.3%.
2. Smoked Herrings: Contributed 0.4 to the national rate with a 12.4% annual increase.
3. Imported Vegetable Oil: Rose by 26.6%, highlighting remaining vulnerabilities in imported food security despite a stronger cedi.
4. River Fish and Large Onions: Recorded price jumps of 12.9% and 21.8% respectively.
5. Kenkey with Fried Fish: A local favorite that added 0.2 to the inflation rate following a 12.8% price rise.
Lower prices
The primary reason Ghana was able to achieve inflation rate below 5% was a massive collapse in the prices of several essential vegetables and fruits. These items acted as a powerful counterweight to the soaring cost of plantains and ginger, contributing negatively to the overall inflation pace.
The most notable price drops compared to last year include:
1. Garden Eggs: Prices fell by -58.7%.
2. Fried Fish: Prices dropped by -50.7%.
3. Fresh Tomatoes: A daily staple, prices have crashed by -42.5%.
4. Fresh Okro and Cabbage: Prices are down by roughly -40% and -38% respectively.
5. Maize: Prices for this essential grain fell by -23.1%.
What the average Ghanaian can do
For the person on the street, this new era of low inflation means several things:
1. Budgeting with Confidence: With the 13th consecutive month of falling inflation, families can finally plan their monthly spending without fearing that prices will double by next week.
2. Changing the Menu: It is currently much cheaper to cook with fresh tomatoes and garden eggs than to rely on plantains, which remain an expensive luxury.
3. Cheaper Loans: Because inflation has collapsed, the Bank of Ghana has cut interest rates to 15.5%. For the average person, this could eventually mean cheaper credit for small businesses or personal needs.
