Ghana’s inflation slows to 4.6% in July, first decline since March

Ghana’s annual inflation rate eased to 4.6% in July 2026, down from 5.3% recorded in June, marking the first slowdown in consumer price growth since March.

The latest figure was announced on Thursday by Government Statistician Alhassan Iddrisu, who attributed the moderation in inflation to easing food prices and stable exchange rate conditions.

The decline represents a significant improvement from the 12.1% inflation rate recorded in July 2025, underscoring Ghana’s continued recovery from its most severe economic crisis in decades.

What they are saying

According to data from the Ghana Statistical Service, food and non-alcoholic beverage inflation slowed to 3.1% in July from 3.9% in June.

Imported inflation also eased, with the cost of imported goods rising by 2.0% year-on-year, compared with 2.3% in the previous month.

Iddrisu noted that exchange-rate stability played a key role in keeping imported goods affordable for households and businesses.

• “Imported inflation of only 2% shows exchange-rate stability is keeping foreign goods affordable for households and firms,” he said.

He added that the pace of price increases has fallen sharply over the past year.

• “In the space of 12 months, the speed at which prices are rising has fallen by more than half.”

The statistics service also noted that more than 86% of Ghana’s inflation basket is driven by domestically produced goods and services, highlighting the importance of local cost factors such as transportation, energy and food production.

More insights

The inflation data comes weeks after the Bank of Ghana left its benchmark policy rate unchanged at 14%, citing the need to assess the inflationary impact of geopolitical developments and global energy market volatility.

• Governor Johnson Asiama had previously indicated that inflation could gradually move higher toward the central bank’s target range of 6% to 10% in the coming months.
• He identified potential increases in utility tariffs, elevated crude oil prices and tensions in the Middle East as key upside risks to the inflation outlook.

While inflation has moderated, concerns persist over the impact of geopolitical tensions on energy and commodity markets.

• The ongoing conflict involving Iran and disruptions around the Strait of Hormuz have contributed to volatility in global oil and fertiliser prices, raising imported inflation risks for commodity-dependent economies.

Higher energy costs could place renewed pressure on consumer prices across West Africa if disruptions persist.

Nigeria comparison

Ghana’s inflation decline follows Nigeria’s footsteps, where the headline inflation rate also eased in June 2026 to 15.91%, compared to 15.93% recorded in May.

The June 2026 inflation rate was significantly lower than the 25.29% recorded in June 2025, reflecting a continued moderation in headline price growth on a year-on-year basis.

On a month-on-month basis, Nigeria’s headline inflation slowed to 1.66% in June, down from 1.75% in May, indicating a slower pace of price increases compared to the previous month.

What you should know

The July slowdown follows an acceleration in inflation during June, when the rate rose to 5.3% from 3.7% in May, representing the fastest pace of price growth recorded this year.

Inflation had earlier increased to 3.4% in April from 3.2% in March, ending a period of steady disinflation that began in late 2024.

The latest reading suggests Ghana’s inflation trajectory remains broadly under control, although policymakers continue to monitor external risks that could influence price stability in the second half of the year.