Ghana’s year-on-year inflation rate declined further to 3.2 percent in March 2026, marking the 15th consecutive monthly decline and the lowest level recorded since the rebasing of the Consumer Price Index (CPI) in 2021, the Ghana Statistical Service (GSS) has announced.
According to the GSS, the Consumer Price Index increased to 264.8 in March 2026 from 256.5 in March 2025, translating into an annual inflation rate of 3.2 percent, down slightly from 3.3 percent recorded in February 2026.
On a month-on-month basis, inflation slowed sharply to 0.1 per cent in March 2026, compared to 0.8 percent in February, indicating that price pressures are easing in the short term.
The GSS noted that inflation had declined by 19.2 percentage points from 22.4 percent in March 2025, reflecting a steady and sustained movement toward price stability.
Food inflation continued to ease, declining marginally to 2.3 percent in March 2026 from 2.4 percent in February. On a monthly basis, food prices fell by 0.3 percent, suggesting increasing stability in food markets.
Some food sub-classes recorded deflation, with vegetables and plantain prices falling by 1.3 percent year-on-year, while cereals such as maize and rice declined by 8.6 percent over the same period.
However, other food categories continued to record moderate increases, including fish (8.3 percent), ready-made food (8.9 percent) and meat (5.7 percent), though at slower rates than previously observed.
Non-food inflation also eased slightly to 3.9 percent in March 2026, down from 4.0 percent in February, with prices rising modestly by 0.3 percent month-on-month.
The GSS explained that prices of services and processed goods tend to be stickier downward compared to food items.
Inflation for locally produced items rose to 4.9 percent in March 2026, up from 4.5 percent in February, while inflation for imported items declined into negative territory at -0.6 per cent, compared to 0.6 percent the previous month.
This indicates that, on average, imported goods became cheaper over the year, while prices of locally produced items continued to rise.
Inflation for goods slowed sharply to 1.7 percent in March 2026, from 3.2 percent in February, with prices declining by 1.0 percent month-on-month.
Goods account for approximately 73 percent of household consumption, making the slowdown particularly beneficial for consumers.
In contrast, services inflation increased significantly to 7.2 percent, up from 3.7 percent, with monthly prices rising by 0.4 percent, indicating rising costs in service-related sectors.
Regional inflation patterns
The GSS reported marked regional disparities in inflation. The North East Region recorded the highest inflation rate at 8.6 percent, while the Savannah Region recorded the lowest at -4.6 per cent, indicating deflation.
Seven out of Ghana’s 16 regions recorded deflation in March 2026, compared to four regions in February. These included the Northern, Oti, Bono, Western, Upper East, Savannah and Bono East regions.
The top five regions with the highest inflation—North East, Ashanti, Volta, Central and Eastern—accounted for about 67 per cent of total inflation, highlighting the concentration of price pressures in specific parts of the country.
Despite moderate inflation of about 4.0 percent, Greater Accra contributed the largest share (35.6 per cent) to overall inflation, reflecting its higher share of national consumption. Ashanti followed closely, contributing 33.3 percent.
At the item level, inflation was driven by a small number of products. The top five contributors—charcoal, green plantain, smoked herrings, senior high school fees and large onions—accounted for 61.5 percent of total inflation in March 2026.
Items recording the highest inflation rates included ginger (61 per cent), green plantain (59 percent), charcoal (53 percent), cashew (47 per cent) and palm fruit (39.6 percent).
Conversely, several items recorded sharp deflation, including garden eggs (-60.3 percent), fried fish (-50.1 per cent), pawpaw (-49.6 percent), cocoyam leaves (-46.7 percent) and fresh okro (-44.7 percent), which together reduced overall inflation by 18.3 percent.
Year-on-year inflation for fresh tomatoes was -21.8 percent, though prices rose sharply by 20.6 percent month-on-month, reflecting recent market disruptions following events in Burkina Faso.
Petrol recorded -25.6 percent year-on-year inflation, but 3.1 percent month-on-month, while bus and trotro fares declined by 6.2 percent year-on-year and remained largely unchanged month-on-month.
The largest contributor to inflation was housing and utilities, which recorded an inflation rate of 12.4 percent and contributed 40.6 percent of total inflation.
Food and non-alcoholic beverages contributed 31.3 percent, while education contributed 15.6 percent.
Together, these three divisions accounted for 87.5 percent of total inflation in March 2026. Transport recorded -7.3 percent inflation, exerting the largest downward pressure, while health, information and communication, insurance and financial services recorded no significant price changes.
The GSS concluded that inflation in March 2026 was not broad-based, but concentrated in a few critical sectors—particularly housing, food and education—that directly affect household living conditions. The sustained slowdown, however, points to improving macroeconomic stability and easing cost pressures for consumers.
By: Christian Akorlie / businesspostonline
