Editorial: January inflation rate of 3.8% marks 13th consecutive decline

According to latest Consumer Price Index (CPI) data, the country’s inflation rate fell sharply to 3.8 percent in January 2026 – marking the 13th consecutive decline and lowest rate since the rebasing of prices in 2021.

This represents a 19.7 percentage-point drop from the 23.5 percent recorded in January 2025 and a 1.6 percentage-point decline from the 5.4 percent inflation recorded in December 2025.

This sustained slowdown signals a strengthening return to macroeconomic stability after a prolonged period of elevated inflation.

Government Statistician Dr. Alhassan Iddrisu said the consistent easing of inflation reflects improving price dynamics across key segments of the economy, particularly goods, food and locally produced items.

On a month-on-month basis, overall prices increased marginally by 0.2 percent between December 2025 and January 2026 compared to a 0.9 percent increase recorded in the previous month, indicating subdued short-term price movements.

However, despite the national slowdown, regional disparities persist. North East Region recorded the highest inflation rate at 11.2 percent while Savannah Region posted the lowest at minus 2.6 percent.

The Ghana Statistical Service (GSS) says differences in local supply conditions, transport costs and market access continue to drive uneven inflation outcomes across regions.

Major contributors to inflation were items such as charcoal, green plantain, smoked herrings, ginger, vegetable oil and accommodation services which recorded relatively high price pressures, while prices of several fresh food items – including garden eggs, tomatoes, okro and pawpaw – declined significantly, helping to moderate overall inflation.

GSS notes that easing inflation creates room for households to plan budgets with greater confidence, prioritise essential spending and increase savings. For businesses, on the other hand, the current environment presents opportunities to invest in efficiency, strengthen local supply chains and stabilise prices.

Consequently, GSS has urged government to sustain fiscal discipline, continue efforts to stabilise food prices and invest in storage, irrigation, transport infrastructure and market access to reduce regional price disparities and consolidate the inflation gains.

Despite the current achievement, history warns that price stability is never guaranteed. The Bank of Ghana has identified potential spillover risks, including upward adjustments in utility prices and continued commodity market volatility.

Additionally, Ghana relies heavily on imported crude and a sustained rise in oil bills threatens to increase transportation and production costs – potentially undermining recent gains.

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