Ghana’s year-on-year inflation rate fell to 4.6 per cent in July 2026, down from 5.3 per cent in June, as declining food prices continued to ease the cost of living and reinforce the country’s improving macroeconomic outlook.
The latest Consumer Price Index (CPI) data released by the Ghana Statistical Service (GSS) showed that inflation declined by 0.7 percentage points from the previous month and by 7.5 percentage points from the 12.1 percent recorded in July last year, indicating sustained moderation in consumer price growth.
Government Statistician, Dr. Alhassan Iddrisu, said although prices were still rising, they were increasing at a much slower pace than a year ago, reflecting continued easing of inflationary pressures across the economy.
“The pace of price increases has slowed considerably, signalling improved price stability,” he said during the release of the July inflation figures.
On a month-on-month basis, inflation slowed further to 0.1 percent in July from 0.2 percent in June, suggesting that consumer prices remained virtually unchanged during the month.
The Consumer Price Index rose to 271.1 in July from 259.1 in June, reflecting movements in the overall price level based on the 2021 CPI basket.
Food prices remained the biggest factor behind the decline in headline inflation.
Year-on-year food inflation eased to 3.1 percent in July from 3.9 per cent in June, while month-on-month food inflation fell to minus 0.1 per cent, indicating that average food prices declined slightly during the month.
The GSS described the development as evidence that “food relief is real,” noting that lower food prices were easing pressure on household budgets.
Among the food items recording the largest annual price declines were kontomire, which fell by 41.2 percent, garden eggs (34.5 percent), maize (32.9 percent), pawpaw (26.8 percent), millet (26.4 percent), guinea corn or sorghum (22.3 percent), beans (20.6 percent), lime (19.8 percent), local rice (16.0 percent) and Bambara beans (15.7 percent).
Despite the overall improvement, several commodities recorded sharp price increases over the period.
Ginger registered the highest increase, rising by 111.3 percent, while mangoes increased by 89.0 percent, shrimps by 67.1 percent, bananas by 45.9 percent, fresh tomatoes by 43.4 percent and fresh coconut by 39.2 percent.
The GSS noted that although headline inflation had declined, price movements differed significantly across individual products, with some becoming substantially cheaper while others recorded sharp increases.
Non-food inflation remained higher than food inflation, although it also declined.
The year-on-year non-food inflation rate eased to 6.1 percent in July from 6.3 percent in June. According to the GSS, non-food items accounted for 67.6 percent of total inflation during the month, meaning that nearly 68 pesewas of every GH¢1 increase in prices came from non-food goods and services such as transport, housing, education and healthcare.
The Statistical Service identified services as the “last hurdle” in Ghana’s fight against inflation.
Although services inflation slowed to 8.5 per cent in July from 9.4 per cent in June, it remained the highest among all the major components of the Consumer Price Index.
The report said transport fares, rents, healthcare and school fees continued to exert significant upward pressure on household expenditure.
Rent was the single biggest contributor to inflation during the month, accounting for 13.0 percent of overall price increases, followed by fresh tomatoes (11.9 percent), ginger (11.8 percent), cooked rice (8.9 percent), river fish (6.2 percent), charcoal (6.1 percent), senior high school fees (5.4 per cent), bus and trotro fares (5.4 percent), hotel accommodation (3.8 percent) and electricity (3.7 percent).
The report also showed that inflation continued to be driven largely by locally produced goods.
Inflation for locally produced items slowed to 5.9 percent in July from 6.7 percent in June, while imported goods inflation eased to 2.0 per cent from 2.3 percent.
According to the GSS, locally produced goods accounted for 86.7 percent of overall inflation, underscoring that domestic factors remain the principal source of inflationary pressures despite the continued easing in consumer prices.
A Business Desk Report