Ghana’s inflation rate declined to 4.6 percent in July 2026, its lowest level in recent months and a sharp drop from 12.1 percent recorded a year earlier, signalling a broad-based easing in consumer price pressures across the economy.
The latest Consumer Price Index (CPI) data released by the Ghana Statistical Service (GSS) show that inflation fell from 5.3 percent in June 2026 to 4.6 percent in July, representing a decline of 0.7 percentage points month-on-month.
The figures also indicate that the pace at which prices are increasing has more than halved over the past 12 months.
Addressing journalists at the release of the July inflation figures, Government Statistician Dr. Alhassan Iddrisu said the latest numbers pointed to a significant moderation in inflation, although consumers should not interpret falling inflation as falling prices.
“At a 4.6 percent inflation rate, prices are still rising, only more slowly. Only when inflation falls below zero, what economists describe as deflation, do prices actually decline,” he explained.
The July data also showed month-on-month inflation of just 0.1 percent, suggesting that prices remained largely stable between June and July.
Food inflation continued its downward trend, falling to 3.1 percent from 3.9 percent in June, providing some relief to households that have struggled with elevated food costs over the past two years.
Several staple food items recorded significant year-on-year price declines, including kontomire, maize, millet and local rice, helping to moderate overall food inflation.
However, sharp increases in the prices of ginger, tomatoes, mangoes and shrimps prevented a more dramatic decline.
According to the GSS, food contributed 32.4 percent of headline inflation, while non-food items accounted for 67.6 percent, underscoring a shift in the drivers of inflation.
“For every GH¢1 of price increases experienced by households, roughly 68 pesewas came from non-food items such as transport, rent and school fees, while about 32 pesewas came from food,” Dr. Iddrisu noted.
The development marks a notable change in Ghana’s inflation dynamics, where food prices historically accounted for the bulk of inflationary pressures.
While inflation moderated across virtually all major categories, services continued to post the highest rate at 8.5 percent, even though this represented an improvement from 9.4 percent in June.
Goods inflation eased to 3.4 percent from 3.7 percent, while inflation for locally produced items slowed to 5.9 percent from 6.7 percent.
Imported inflation recorded just 2.0 percent, down from 2.3 percent, reflecting the impact of relative exchange-rate stability and easing imported cost pressures.
The GSS estimates that locally produced goods and services accounted for approximately 87 percent of total inflation recorded in July, reinforcing the view that Ghana’s current inflation pressures are largely domestically generated rather than imported.
“Domestic costs such as transport, energy, wages and supply-chain factors are now contributing far more to inflation than developments abroad,” Dr. Iddrisu said.
He described services inflation as the “last hurdle” in the fight against rising prices, warning that it remains the most persistent component of the inflation basket.
A breakdown of expenditure divisions showed that housing, water, electricity and gas remained key inflation drivers despite the broader easing trend.
Food and non-alcoholic beverages remained the largest contributor to headline inflation, accounting for 32.4 percent of total inflation. Housing, water and energy followed with a contribution of 22.8 percent, while transport accounted for 13.6 percent.
Education services continued to exert upward pressure on household budgets, with inflation in that category increasing from 8.7 percent to 9.4 percent.
Insurance and financial services also recorded one of the strongest increases during the month.
The five largest contributors to July inflation were rent payments, fresh tomatoes, ginger, cooked rice and river fish, highlighting the continued burden of housing and essential food items on household spending.
Inflation figures released by the GSS revealed significant disparities across Ghana’s regions.
The North East Region recorded the highest inflation rate at 10.8 percent, more than double the national average, while Bono East Region posted a rate of negative 3.8 percent, indicating that prices in the region were lower than a year ago.
Western Region and Savannah Region also recorded annual price declines of 1.5 percent and 1.4 percent respectively.
The spread between the highest and lowest regional inflation rates exceeded 14 percentage points, illustrating the uneven nature of cost-of-living pressures across the country.
Ashanti and Greater Accra continued to dominate the national inflation picture due to their large share of household expenditure. Together, the two regions accounted for about 62 percent of headline inflation.
Greater Accra’s inflation rate fell sharply from 5.8 percent in June to 4.7 percent in July, a development that contributed significantly to the decline in the national average.
Outlook remains
The July figures reinforce a broader disinflation trend that began during the second half of 2025. Inflation fell steadily from 12.1 percent in July last year to a low of 3.2 percent in March 2026 before rising again to 5.3 percent in June.
The latest decline suggests that the June increase may have been temporary, although policymakers are likely to remain cautious given persistent pressures in services, housing and education.
For households and businesses, however, the latest data offer renewed confidence that price stability is gradually returning to the economy.
With food inflation easing, imported inflation remaining subdued and month-on-month inflation almost flat, attention will now shift to whether the downward trajectory can be sustained through the second half of the year.
By: Christian Akorlie / businesspostonline
