Ghana’s year-on-year inflation fell to 3.3 percent in February 2026, marking the 14th consecutive monthly decline and the lowest level since the 2021 rebasing of the Consumer Price Index (CPI), according to data released by the Ghana Statistical Service. The steady decline reflects easing price pressures across the economy and signals improving macroeconomic stability.
The CPI for February 2026 stood at 264.4, up from 255.9 in the same month last year, representing a 3.3 percent increase over 12 months. On a month-on-month basis, prices rose by 0.8 percent, indicating marginal increases between January and February. February’s figure represents a 0.5 percentage point drop from the 3.8 percent recorded in January 2026 and a 19.8 percentage point decline compared with 23.1 percent in February 2025, a period that saw high inflationary pressures following global commodity price shocks and domestic supply constraints.
Food and Non-Food Inflation Trends
Breaking down the components, food and non-alcoholic beverages inflation slowed sharply to 2.4 percent in February, down from 3.9 percent in January, reflecting a moderation in prices of staples and processed foods. By contrast, non-food inflation edged up slightly to 4.0 percent, from 3.8 percent the previous month, driven in part by transport, utilities, and energy costs.
Inflation by origin showed that locally produced items recorded a modest increase of 4.5 percent, slightly down from 4.6 percent in January, while imported goods experienced a sharper slowdown, with inflation falling to 0.6 percent from 2.0 percent. Analysts suggest that the drop in imported goods inflation reflects stabilisation in the exchange rate and easing global commodity prices, particularly for oil and grains, which had previously put pressure on household budgets.
In terms of broad categories, goods inflation decreased to 3.2 percent from 3.7 percent in January, while services inflation fell to 3.7 percent from 4.2 percent, showing moderation in sectors including education, healthcare, and recreation. These declines are interpreted as evidence of both reduced cost-push pressures and effective monetary management by the Bank of Ghana.
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Regional Variations
Regional disparities in price movements remain evident. The Savannah Region recorded the lowest year-on-year inflation at negative 5.6 percent, largely due to abundant harvests and falling food prices, while the North East Region posted the highest rate at 8.9 percent, reflecting localized supply constraints and higher transport costs. Economists note that addressing these disparities is critical for national price stability, especially in food-insecure regions.
Implications for Policy and Growth
The sustained decline in inflation provides policymakers with more flexibility to support economic growth. Lower price pressures can encourage private sector investment, increase household consumption, and reduce the cost of borrowing. Analysts also argue that sustained low inflation strengthens the predictability of the macroeconomic environment, supporting Ghana’s broader development goals, including poverty reduction and industrialisation.
Monetary authorities have maintained that disciplined fiscal and monetary policies, combined with stabilisation of exchange rates and improved food supply management, have contributed to the downward trend. The Bank of Ghana’s interest rate policy, which balances growth support with inflation containment, appears to have played a key role.
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Outlook
While the current trend is positive, economists caution that vigilance is required. External shocks, including volatile global commodity prices or extreme weather events affecting agriculture, could still influence domestic inflation. However, with inflation at its lowest level since the 2021 CPI rebase, Ghana is positioned to benefit from increased investor confidence, improved household purchasing power, and more sustainable economic growth.
Overall, the February 2026 inflation figures suggest that Ghana is steadily moving away from the high-inflation environment experienced in 2025, demonstrating both policy effectiveness and gradual macroeconomic stabilisation. Continued monitoring and regional-focused interventions will be key to maintaining this momentum and ensuring equitable benefits across the country.
