Ghana’s inflation rate has nosedived to a 27-year low of 3.8% in January 2026, underscoring the country’s remarkable disinflationary trajectory.
The January reading marks a resounding 13th consecutive monthly decline since the 2021 rebasing of the Consumer Price Index, signalling a pervasive easing of price pressures across both food and non-food categories.
This represents a striking 1.6 percentage-point month-on-month drop from December 2025’s 5.4%. Year-on-year inflation has plummeted from a lofty 23.5% in January 2025 to 3.8%, reflecting a profound disinflationary correction after two years of entrenched price pressures.
Food inflation, a pressing concern for households, has decelerated to 3.9% from 4.9% in December, while non-food inflation has fallen precipitously to 3.9% from 5.8%.
Regional disparities persist, with the Savannah Region recording a rare outright price decline of -2.6%, while the North East Region posts the highest inflation at 11.2%.
The latest reading follows the Bank of Ghana’s bold move to cut its policy rate by 250 basis points to 15.5%, aiming to stimulate economic activity and reduce borrowing costs.
This historic low could set the stage for further easing at upcoming Monetary Policy Committee meetings.
As Ghana navigates its economic strategy, policymakers remain vigilant, monitoring exchange rate pressures, global commodity fluctuations, and fiscal risks to global commodity fluctuations, and fiscal risks to avoid overshooting the target.
NKONKONSA.com
