Inflation drops to 4.6% in July
Ghana’s inflation rate eased to 4.6 per cent in July 2026, reversing three consecutive months of increases and signalling renewed moderation in consumer price pressures.
Data from the Ghana Statistical Service (GSS) shows that headline inflation declined by 0.7 percentage points from 5.3 per cent recorded in June.
The latest development suggests that although prices continue to increase across the economy, the pace of those increases has slowed, providing some relief for households and businesses facing persistent cost pressures.
The decline further strengthens expectations that inflation could remain within the Bank of Ghana’s medium-term target range of 8 ± 2 per cent, assuming current macroeconomic conditions remain favourable.
The moderation was supported by slower price growth in both food and non-food categories. Food inflation fell to 3.1 per cent in July from 3.9 per cent in June, while non-food inflation declined slightly to 6.1 per cent from 6.3 per cent during the same period.
Services inflation also recorded a decline, dropping to 8.5 per cent in July from 9.4 per cent in June, reflecting slower increases in the prices of services.
The data further revealed a significant difference between locally produced and imported goods. Inflation for locally produced items stood at 5.9 per cent, compared with 2.0 per cent for imported goods.
The relatively lower inflation rate for imported goods reflects reduced external price pressures, supported by improved stability in the Ghana cedi and softer global inflation trends.
Government Statistician Dr Alhassan Iddrisu noted that food and non-alcoholic beverages remained the largest contributor to headline inflation, accounting for 32.4 per cent of total price movements across the 13 divisions of the Consumer Price Index.
Regional variations in inflation remained significant, with the North East Region recording the highest inflation rate at 10.8 per cent. The Bono East Region recorded the lowest rate at -3.8 per cent, indicating that average prices in the region were lower compared with the same period last year.
The latest figures add to growing signs of improved macroeconomic stability, with easing inflation expected to support household purchasing power, strengthen business confidence and improve investment planning.
Analysts say a sustained decline in inflation, combined with exchange rate stability and disciplined fiscal management, could create room for further monetary policy adjustments in the coming months. Such a move could help lower borrowing costs and provide additional support for economic activity.
