Ghana’s inflation rate has dropped to 3.8% in January 2026, the lowest since 2021, sparking debate on the driving factors behind this trend. According to GHOne News, Atick Yakubu, a Member of the NPP Communications Team, attributes the decline to reduced government spending.
The Ghana Statistical Service reports that the Consumer Price Index rose to 262.3 in January 2026, up from 252.6 in January 2025, marking a 19.7 percentage-point decline from the 23.5% recorded a year earlier. Both food and non-food categories contributed to the slowdown, with year-on-year food inflation moderating to 3.9% {{IE_0}}ยน{{/IE_0}}.
Government Statistician Dr. Alhassan Iddrisu emphasizes that the sustained decline signals improving macroeconomic stability, potentially easing cost pressures for households and businesses. He urges continued fiscal discipline to maintain the gains achieved so far.
The decline in inflation has been ongoing for 13 consecutive months, with regional disparities evident. The North East Region recorded the highest inflation at 11.2%, while the Savannah Region posted the lowest at 2.6%.
The Bank of Ghana has responded to the trend, cutting its policy rate to 15.5%, reinforcing expectations of a gradual return to price stability.
As Ghana’s economy shows signs of stabilization, the impact on households and businesses remains a key focus. With inflation on a downward trend, experts predict a more favorable economic environment in the months ahead.
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Author: Korkor Anumu
