Inflation eases to 4.6% in July as food Prices slow – GSS

Ghana’s inflation rate declined to 4.6 per cent in July 2026, ending three consecutive months of increases and signalling a slowdown in the pace of price growth across the economy.

Data released by the Ghana Statistical Service (GSS) showed that headline inflation fell by 0.7 percentage points from 5.3 per cent recorded in June to 4.6 per cent in July.

The latest figures indicate that although prices of goods and services are still increasing, the rate of increase has reduced, providing some relief to households and businesses affected by rising living costs.

The moderation also strengthens expectations that inflation could remain within the Bank of Ghana’s medium-term target range of 8 per cent ±2 per cent, assuming current economic conditions remain stable.

The decline was largely driven by slower increases in both food and non-food prices.

Food inflation dropped to 3.1 per cent in July from 3.9 per cent in June, while non-food inflation eased slightly to 6.1 per cent from 6.3 per cent during the same period.

Services inflation also recorded a reduction, falling to 8.5 per cent in July from 9.4 per cent in June, reflecting slower growth in the cost of services.

The report further revealed that locally produced goods recorded inflation of 5.9 per cent, compared with 2.0 per cent for imported items.

The lower inflation rate for imported products was attributed partly to improved stability in the Ghana cedi and reduced external price pressures.

Government Statistician Dr Alhassan Iddrisu explained that food and non-alcoholic beverages remained the largest contributor to overall inflation, accounting for 32.4 per cent of price changes across the 13 divisions of the Consumer Price Index.

The data also showed significant differences in inflation levels across regions.

The North East Region recorded the highest inflation rate at 10.8 per cent, while Bono East posted 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 inflation figures add to recent signs of improving economic stability, with lower price pressures expected to support household purchasing power, boost business confidence and create a more predictable environment for investment.

Analysts say continued stability in the exchange rate, alongside prudent fiscal management, could strengthen the possibility of further monetary policy adjustments by the Bank of Ghana, which may help reduce borrowing costs and support economic expansion.

Prince Antwi

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