ACCRA — Ghana’s inflation slowed again in January, with consumer prices rising just 0.2% month-on-month and annual inflation easing to 3.8%, the 13th straight monthly decline and the lowest reading since the CPI rebasing in 2021, according to official data cited by Reuters.
The disinflation was broad-based. Food inflation slowed to 3.9% year-on-year, while some non-food categories registered month-on-month declines, reflecting softer imported cost pressures and improved domestic supply conditions.
Economists say three forces are driving the trend: a firmer cedi that has reduced import-pass-through, easing supply constraints in food markets, and tight macro policy under Ghana’s IMF-supported reform path. Ghana has combined fiscal consolidation with earlier monetary tightening, then gradually shifted to easing as inflation dropped. Reuters reports the Bank of Ghana has cut its policy rate by a cumulative 12.5 percentage points since July, while maintaining a cautious tone.
The latest figures mark a dramatic turnaround from Ghana’s recent crisis period, when inflation peaked above 50% in late 2022 amid debt stress and currency weakness. Since then, debt restructuring, external support and policy tightening have helped stabilize macro conditions.
For households and businesses, lower inflation should support real incomes, planning visibility and credit quality over time. But policymakers remain wary of upside risks, including food or fuel shocks and global financial volatility, and have signaled they do not want to declare victory too early.
Ghana is expected to complete its current three-year IMF program around August 2026, making the coming months a key test of whether inflation can stay durably low while growth firms.
