Ghana’s inflation rate fell for the 13th consecutive month in January, easing sharply to 3.8 per cent year-on-year from 5.4 per cent in December, highlighting continued improvement in price stability across the West African economy.
The figures, released Wednesday by the Ghana Statistical Service (GSS), show that the slowdown was largely driven by easing food prices, which remain the single largest component of the Consumer Price Index. Food inflation dropped to 3.9 per cent in January, contributing significantly to the 1.6 percentage-point decline in headline inflation.
Government Statistician Alhassan Iddrisu described the outcome as a broad-based moderation in price pressures. “The sustained decline signals that Ghana is firmly on a path towards price stability,” he said, noting that the January inflation rate is the lowest recorded since Ghana’s CPI was rebased in 2021.
Ghana’s inflation surge began in the aftermath of the COVID-19 pandemic, intensifying in 2022 amid sharp currency depreciation, rising public debt, and fiscal pressures.
Inflation peaked at a historic 54.1 per cent in December 2022, during the country’s economic crisis marked by soaring food and fuel prices, declining household purchasing power, and a loss of investor confidence.
The government subsequently defaulted on portions of its sovereign debt, triggering a domestic and external debt restructuring process. Since then, fiscal consolidation, exchange rate stabilisation, and tight monetary policy have helped reverse inflationary pressures and restore macroeconomic stability.
The Bank of Ghana has responded by gradually reducing its benchmark policy rate. Since July 2025, the central bank has cut rates by a cumulative 12.5 percentage points, partially reversing the aggressive hikes introduced during the inflation crisis.
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In November, the bank lowered its benchmark interest rate by 350 basis points to 18 per cent, marking the third consecutive cut amid the declining inflation trend.
Despite the positive developments, authorities have maintained a cautious stance, stressing that the gains must be durable and resilient to external shocks.
Ghana’s current inflation rate is now well below the Bank of Ghana’s official target of 8 per cent, which operates within a tolerance band of plus or minus 2 percentage points.
Governor Johnson Asiama reiterated after the Monetary Policy Committee’s January meeting that it is too early to reassess or adjust the inflation target, underlining the need for vigilance as the economy recovers.
Ghana continues to operate under a three-year International Monetary Fund (IMF) support programme following its debt restructuring, which is expected to conclude in August 2026.
The programme aims to restore macroeconomic stability, strengthen debt sustainability, and support the country’s ongoing economic recovery.
Analysts say the continued decline in inflation, if sustained, could boost consumer confidence, support investment, and provide room for further monetary easing, potentially reinforcing Ghana’s path to long-term macroeconomic stability.