Ghana’s inflation rate dropped sharply to 3.8 percent in January 2026, the lowest level since the rebasing of prices in 2021, according to new data from the Consumer Price Index. The decline marks the 13th consecutive month of easing, down from 5.4 percent in December 2025.
Policy analyst Dr. Peter Terkper cautioned, however, that the headline figure may not translate into immediate relief for consumers. Speaking on Morning Target with Bright Nana Amfoh, Dr. Terkper explained that inflation reflects a basket of goods and services, with shifts in individual items offsetting one another.
“Tomatoes price may be up, but onion may be down, cow meat be up, okro may be down,” he said. “So when they put all together, the one that carries higher weight influences the overall inflation level.”
He added that for the production sector, meaningful changes would only occur if the cost of raw materials fell. “If the cost of raw materials remain the same then it’s the exchange rate factor,” he said. “Because you pass on the cost to the consumer, then you’ll still experience that.”
The sharp decline has been welcomed by some observers, who describe it as a positive development for businesses and government planning, provided the rate remains stable. Yet skepticism persists. The Minority in Parliament has dismissed the figures as “cooked,” arguing that they exist only on paper while ordinary Ghanaians continue to grapple with high living costs.
