Ghana's inflation rate fell to 3.8% in January 2026, the lowest reading since 1999, marking 13 consecutive months of decline.
On February 4, 2026, the Ghana Statistical Service (GSS) announced that national year-on-year inflation plummeted to 3.8% in January 2026. This milestone marks the 13th consecutive month of decline and represents the lowest inflation reading in Ghana since August 1999.
Breakthrough Macroeconomic Stability
Government Statistician Dr. Alhassan Iddrisu reported that the 1.6 percentage point drop from December’s 5.4% signals a firm return to price stability. Key drivers of this historic low include:
Sector Convergence: Both food and non-food inflation converged at 3.9%, down from 4.9% and 5.8% respectively in December 2025.
Import vs. Local Prices: Inflation for imported items fell to 2.0%, while locally produced items slowed to 4.5%, highlighting a significant correction in exchange-rate-driven costs.
Regional Deflation: While the North East Region recorded the highest rate at 11.2%, the Savannah Region experienced outright deflation at -2.6%.
Policy Impact and Market Relief
The sustained disinflationary trend has provided the Bank of Ghana (BoG) significant room for monetary easing. Following its January 2026 meeting, the Monetary Policy Committee (MPC) cut the benchmark lending rate by 250 basis points, from 18% to 15.5%, to stimulate economic growth.
Despite the low headline figure, GSS data reveals a "tale of two markets":
Price Declines: Staples like fresh tomatoes (-42.5%) and garden eggs (-58.7%) saw massive price drops.
Persistent Highs: Some items remain expensive, with green plantains (+67.9%) and ginger (+72.3%) recording high year-on-year increases.
Contextual Comparison
For perspective, Ghana's inflation reached a record high of 54.1% in December 2022. The current 3.8% rate is the first time in the Fourth Republic’s history that inflation has successfully dropped below the 5% threshold since the late 1990s.
