ELS: MBN360 BUSINESS
Ghana has recorded another significant milestone in its battle against rising prices, with inflation dropping to 4.6 percent in July 2026.
The latest figures released by the Ghana Statistical Service (GSS) show that the country’s disinflation trend remains firmly on track, offering renewed hope for households, businesses and policymakers after years of elevated living costs.
The year-on-year inflation rate declined from 5.3 percent in June to 4.6 percent in July, representing a 0.7 percentage point fall within a month. Even more remarkable is the comparison with the same period last year when inflation stood at 12.1 percent. The latest reading represents a reduction of 7.5 percentage points over the past 12 months, highlighting the country’s remarkable progress in restoring price stability.
Government Statistician Dr. Alhassan Iddrisu explained that although prices are still increasing, they are rising at a much slower pace than they did a year ago. This reflects continued moderation in inflationary pressures across the economy.
Consumer prices barely moved in July
The latest Consumer Price Index data reveal that inflation on a month-on-month basis slowed to just 0.1 percent in July from 0.2 percent in June. This means that average consumer prices remained almost unchanged during the month, providing further evidence that inflationary pressures continue to weaken.
The Consumer Price Index itself increased to 271.1 in July from 259.1 in June, reflecting changes in the overall price level based on the 2021 CPI basket. While prices continue to rise gradually, the pace of those increases has slowed significantly compared to previous years.
The latest figures strengthen confidence that Ghana’s macroeconomic recovery remains on course as inflation continues its downward trajectory.
Food prices bring welcome relief to households
Food inflation once again emerged as the biggest reason behind the decline in headline inflation.
Year-on-year food inflation slowed to 3.1 percent in July from 3.9 percent in June. Even more encouraging was the monthly food inflation figure of negative 0.1 percent, indicating that average food prices actually declined slightly during the month.
The Ghana Statistical Service described the development as clear evidence that food relief is becoming increasingly visible in household shopping baskets.
Several staple food items recorded impressive price reductions over the past year.
Kontomire experienced the biggest decline, with prices dropping by 41.2 percent. Garden eggs became 34.5 percent cheaper, while maize prices fell by 32.9 percent. Pawpaw recorded a 26.8 percent decline, millet dropped by 26.4 percent and guinea corn or sorghum fell by 22.3 percent.
Beans also became 20.6 percent cheaper, lime prices declined by 19.8 percent, local rice dropped by 16 percent and Bambara beans recorded a 15.7 percent reduction.
These declines have helped reduce pressure on household food budgets and contributed significantly to the overall moderation in inflation.
Some products still becoming more expensive
Despite the broad easing in food prices, not every item became cheaper.
Ginger recorded the sharpest increase, with prices soaring by 111.3 percent over the past year. Mangoes followed with an 89 percent increase, while shrimps rose by 67.1 percent.
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Bananas became 45.9 percent more expensive, fresh tomatoes increased by 43.4 percent and fresh coconut prices rose by 39.2 percent. Other notable increases included avocado pear, palm fruits, cashew and parking space related services.
The GSS noted that the national inflation figure conceals significant differences across products, with some goods becoming substantially cheaper while others continue to experience sharp price increases.
Services remain the toughest challenge
Although food inflation continues to improve, services remain the biggest obstacle in Ghana’s inflation battle.
Services inflation eased from 9.4 percent in June to 8.5 percent in July, but it remains the highest among all major components of the Consumer Price Index.
According to the Statistical Service, transport costs, rent, healthcare expenses and school fees continue to put pressure on consumers.
The largest contributors to inflation during July included payment for rents, fresh tomatoes, ginger, cooked rice, river fish, charcoal, senior high school fees, bus and trotro fares, hotel accommodation and electricity charges.
These expenses continue to stretch household budgets even as food prices become more affordable.
Non-food inflation still dominates
Non-food inflation also remained higher than food inflation despite easing slightly.
The year-on-year non-food inflation rate declined to 6.1 percent from 6.3 percent in June. According to the GSS, non-food items contributed about 67.6 percent of total inflation during July.
This means that for every GH¢1 increase in prices, nearly 68 pesewas came from non-food goods and services such as transport, housing, education, healthcare, insurance and other essential services.
Meanwhile, inflation for locally produced goods stood at 5.9 percent, compared to just 2 percent for imported products. Locally produced goods accounted for nearly 87 percent of total inflation, indicating that domestic factors continue to drive price movements more than imported inflation.
Regional inflation tells different stories
Inflation rates varied significantly across the country.
The North East Region recorded the highest inflation rate at 10.8 percent, more than twice the national average. At the opposite end, Bono East recorded an inflation rate of negative 3.8 percent, indicating that average prices in the region were lower than they were a year earlier.
The wide regional differences highlight the varying cost of living across Ghana and demonstrate that inflation continues to affect communities differently depending on location.
Outlook remains encouraging
The latest inflation figures represent another major victory in Ghana’s efforts to restore economic stability. Falling food prices have provided meaningful relief for households, while monthly price increases have slowed to almost zero.
However, policymakers are expected to remain cautious as persistent inflation in services such as rent, transport, education and healthcare continues to place pressure on household budgets.
If the current trend continues, Ghana could consolidate its gains and create an environment of greater price stability that supports stronger consumer confidence, investment and sustainable economic growth in the months ahead.
