Transport Records Deflation as Other Non-Food Prices Rise
By Praisebell Rosemond Larbi
Transport prices in Ghana fell by 5.9 per cent year-on-year in January 2026, extending a sustained deflationary trend and setting the sector apart from nearly all other non-food categories, which continue to record rising costs.
For Ghanaian households, January 2026 marked the continuation of a quiet but significant shift in the cost of mobility. According to the latest Consumer Price Index (CPI) data released by the Ghana Statistical Service (GSS), the cost of transport declined sharply on an annual basis, reinforcing a trend that has been in place since the middle of 2025.
The January outturn follows a 5.0 per cent year-on-year decline recorded in December 2025 and represents a dramatic turnaround from conditions earlier in 2025, when transport was one of the fastest-rising components of inflation. In January 2025, transport inflation stood at 16.9 per cent and climbed further to a peak of 17.9 per cent in February, driven largely by fuel price pressures, fare adjustments and elevated logistics costs.
That momentum, however, began to fade in the second quarter of the year. By June 2025, transport inflation had slipped into negative territory at -2.1 per cent, signalling the start of deflation. The decline deepened to -7.7 per cent in July before moderating in subsequent months, culminating in the -5.9 per cent recorded in January 2026.
This sustained deflation places transport in sharp contrast with other non-food categories, most of which continue to exert upward pressure on household budgets. Housing, water, electricity, gas and other fuels rose by 9.3 per cent year-on-year in January, reflecting ongoing cost pressures in utilities and accommodation-related expenses. Recreation, sport and culture recorded a 10.7 per cent annual increase, while insurance and financial services surged by 8.0 per cent.
Even services that form part of daily household consumption showed consistent price increases. Restaurants and accommodation services, education, and health all posted positive annual inflation rates, underlining the uneven nature of price movements across the economy despite the broader disinflation trend.
Analysts suggest the fall in transport costs may be linked to a combination of factors, including relatively lower fuel prices compared with early 2025, easing supply chain pressures, improved exchange rate stability, and adjustments in both public and private transport fares. Reduced logistics costs may also have filtered through to passenger transport, offering some relief to commuters and businesses alike.
However, economists’ caution that while cheaper transport provides a modest buffer for households; its impact should be viewed in context. Transport is only one component of the non-food basket, and continued increases in housing, utilities, and services mean overall living costs remain elevated for many Ghanaians.
Beyond consumer relief, the transport deflation trend is also seen as a reflection of broader economic currents, including shifts in energy pricing, demand conditions, and consumer behaviour. It highlights how disinflation can move unevenly through the economy, with some sectors adjusting faster than others.
By the end of January 2026, transport remained the only major non-food category recording sustained deflation, standing out in an inflation landscape where most goods and services continued to rise, albeit at a slower pace than in previous years.
