Ghana’s disinflationary trend strengthened further in January 2026, with headline inflation easing to 3.8 per cent—the lowest level recorded in almost 27 years.
For perspective, inflation stood at 1.4 per cent in August 1999 before rising to 4.4 per cent in September of the same year, underscoring the rarity of such low inflation in recent Ghanaian economic history.
The January figure marks the 13th consecutive monthly decline since the 2021 rebasing of the Consumer Price Index, pointing to sustained and broad-based easing of price pressures across both food and non-food items.
Inflation dropped by 1.6 percentage points from the 5.4 per cent recorded in December 2025. On a year-on-year basis, inflation fell sharply from 23.5 per cent in January 2025 to 3.8 per cent, reflecting a significant correction after two years of heightened price pressures.
Food inflation, which directly affects household spending, slowed to 3.9 per cent from 4.9 per cent in December, while non-food inflation declined markedly to 3.9 per cent from 5.8 per cent, indicating widespread price moderation across key sectors of the economy.
Regional data, however, shows mixed outcomes. The Savannah Region recorded the lowest inflation rate at -2.6 per cent, signalling outright price declines, while the North East Region posted the highest rate at 11.2 per cent, highlighting ongoing regional disparities.
The latest inflation reading comes just weeks after the Bank of Ghana reduced its policy rate by 250 basis points to 15.5 per cent, a move aimed at easing borrowing costs and supporting economic activity. The historic low inflation rate could pave the way for further monetary easing at upcoming Monetary Policy Committee meetings.
Despite the positive outlook, policymakers remain cautious, closely monitoring exchange rate movements, global commodity price trends, and fiscal risks to prevent a reversal of the gains.
Overall, the January 2026 inflation figure signals a return to price stability not seen since the late 1990s and provides important guidance for businesses, investors, and households as Ghana charts its economic course for the year ahead.
