Ghana’s year-on-year inflation rate fell further to 3.3 percent in February 2026, down from 3.8 percent in January 2026 and a steep decline from 23.1 percent recorded in February 2025.
The latest Consumer Price Index data released by the Ghana Statistical Service confirms that price pressures have eased significantly over the past year.
The February figure represents the fourteenth consecutive month of decline in year-on-year inflation since January 2025. It is also the lowest inflation rate recorded since the rebasing of the Consumer Price Index in 2021. In practical terms, inflation has dropped by 19.8 percentage points within twelve months, a remarkable turnaround in Ghana’s macroeconomic environment.
CPI Trends Show Steady Improvement
The Consumer Price Index for February 2026 stood at 264.4, compared to 255.9 in February 2025. This translates into the year-on-year inflation rate of 3.3 percent. On a month-on-month basis, inflation was recorded at 0.8 percent, indicating that the general price level rose by 0.8 percent between January and February 2026.
While prices continue to rise slightly each month, the pace of increase has slowed considerably compared to the highs of 2022 and 2023 when inflation surged above 50 percent at its peak. The consistent downward movement in inflation reflects improved macroeconomic coordination and relative stability in the exchange rate and commodity prices.
Food Inflation Slows Significantly
A key driver of the overall disinflation has been the easing in food inflation. Food inflation, including non-alcoholic beverages, carries a weight of 42.7 percent in the CPI basket. In February 2026, food inflation slowed sharply to 2.4 percent, down from 3.9 percent in January 2026. This represents a 1.5 percentage point decline within a month.
On a month-on-month basis, food inflation was 0.2 percent in February, significantly lower than the 1.1 percent recorded in January. The moderation in food prices offers some relief to households, particularly low-income families, since food accounts for a substantial share of household expenditure.
The sustained easing in food inflation suggests improved supply conditions and greater price stability in staple commodities. This trend is expected to help preserve consumer purchasing power and support domestic demand.
Non-Food Inflation Edges Up
In contrast to food inflation, non-food inflation recorded a slight uptick. Non-food items, which account for 57.3 percent of the CPI basket, stood at 4.0 percent in February 2026, compared to 3.8 percent in January.
Month-on-month non-food inflation rose to 1.2 percent from negative 0.5 percent in January. The increase indicates some renewed pressure in areas such as utilities, transport, and other service-related costs. However, the overall non-food inflation rate remains moderate compared to previous years.
The balance between easing food prices and stable non-food costs has helped anchor overall inflation at low levels.
Imported Inflation Drops Sharply
One of the most notable developments in the February data is the sharp decline in imported inflation. Inflation for imported items eased significantly to 0.6 percent in February 2026 from 2.0 percent in January. On a month-on-month basis, imported goods recorded negative 0.02 percent, indicating relative price stability.
This decline reflects a more stable exchange rate environment and reduced pass-through effects from global price volatility. Imported inflation has historically played a major role in Ghana’s price dynamics due to the country’s dependence on foreign goods and raw materials. The sharp drop therefore signals improved external sector conditions.
Locally produced items, on the other hand, recorded year-on-year inflation of 4.5 percent in February 2026, slightly higher than the 4.4 percent recorded in January. Month-on-month inflation for locally produced goods was 1.2 percent. Although marginally elevated, the figures remain within manageable levels.
Goods and Services Inflation Moderate
Breaking down the data further, goods inflation declined to 3.2 percent in February from 3.7 percent in January. Services inflation also eased to 3.7 percent from 4.2 percent over the same period.
On a month-on-month basis, goods inflation was 0.94 percent compared to 0.03 percent in January, while services inflation slowed to 0.3 percent from 0.5 percent. These figures indicate that both goods and services are experiencing slower price increases, contributing to the overall moderation in inflation.
Regional Disparities Persist
Despite the national decline, regional variations remain significant. The Savannah Region recorded the lowest inflation rate at negative 2.6 percent in February 2026, reflecting a drop in average prices within the region. Meanwhile, the North East Region posted the highest inflation rate at 8.9 percent.
These disparities highlight the uneven distribution of price movements across the country and underscore the need for targeted regional interventions to address local supply and demand dynamics.
Implications for Monetary Policy
The sustained disinflation trend is likely to influence monetary policy decisions in the months ahead. With inflation firmly anchored within low single digits, policymakers may consider measures that support economic growth while consolidating price stability gains.
The drop from 23.1 percent in February 2025 to 3.3 percent in February 2026 marks a significant milestone in Ghana’s economic recovery process. The fourteen-month downward trajectory demonstrates resilience and improving macroeconomic fundamentals.
If current trends continue, Ghana could enter a period of stable prices, improved investor confidence, and stronger household purchasing power.
READ ALSO: Major Interest Rate Cuts Loom for Borrowers As GRR Plunges to 11.71%
