Inflation drops to 4.6% in July as price increases slow sharply – GSS

Ghana’s year-on-year inflation rate fell to 4.6% in July 2026, down from 5.3% in June, marking a significant slowdown in the pace of price increases and extending the country’s disinflation trend.

Presenting the latest Consumer Price Index (CPI) data on Thursday, Government Statistician Dr. Alhassan Idrissu said the latest figures show that inflation has more than halved over the past year, dropping from 12.1% in July 2025 to 4.6% this year.

“A year ago, prices in Ghana were climbing at 12.1%; today that figure is 4.6%. In 12 months, the rate of inflation declined by more than half,” Dr. Idrissu said.

He explained that inflation measures the average rate at which prices of goods and services purchased by households are rising, rather than the movement in the price of any single commodity.

According to him, the month-on-month inflation rate also eased to 0.1% in July, compared with 0.2% in June, indicating that prices remained largely stable over the past month.

“In other words, over the past month, prices barely moved,” he stated.

Food inflation declines further

The Government Statistician said food inflation continued its downward trend, falling to 3.1% in July from 3.9% in June. On a monthly basis, food prices declined by 0.1%, reflecting easing pressures on several staple food items.

Non-food inflation also moderated slightly to 6.1%, down from 6.3% in June, although prices in the category still increased by 0.5% over the month.

Dr. Idrissu noted that non-food items account for 67.6% of Ghana’s inflation basket, making them the dominant driver of overall inflation.

While prices of goods increased by 3.4%, services inflation remained significantly higher at 8.5%, despite easing from 9.4% in June.

“Services rose by 8.5%, down from 9.4%, but still more than twice the pace of goods. That is rent, school fees, transport and restaurants,” he said.

Inflation largely driven by domestic factors

Dr. Idrissu observed that inflationary pressures remain predominantly domestic rather than imported.

Inflation on locally produced goods declined to 5.9% in July from 6.7% in June, while imported inflation eased to 2.0% from 2.3%.

“Nearly 87% of our inflation is homegrown. This is a domestic supply story, not an import story,” he stressed.

Regional disparities remain

The national inflation figure masked significant regional variations.

The North East Region recorded the highest inflation rate at 10.8%, up from 10.2% in June, while Bono East Region recorded negative inflation, with prices 3.8% lower than a year earlier.

The Ashanti Region recorded 7.6% inflation, while Greater Accra posted 4.7%, with the two regions together accounting for approximately 62% of national inflation.

On a monthly basis, the Ahafo Region registered the highest increase in prices at 1.2%, while the Western Region experienced the sharpest decline, with prices falling 0.6%.

Rent remains biggest contributor

According to the Ghana Statistical Service, rent was the single largest contributor to July’s inflation, accounting for 13% of the headline rate.

Other major contributors included fresh tomatoes (11.9%), ginger (11.8%), cooked rice (8.9%) and river fish (6.2%).

The commodities recording the highest annual price increases were ginger (111.3%), mango (89%), shrimps (67.1%), banana (45.9%) and fresh tomatoes (43.4%).

Meanwhile, the biggest annual price declines were recorded for kontomire (41.2%), garden eggs (34.5%), maize (32.9%), pawpaw (26.8%) and millet (26.4%).

“In short, today’s inflation is driven by rent, transport, education and a handful of fast-moving local foods,” Dr. Idrissu said.

The Government Statistician encouraged households to manage spending carefully by shopping weekly, choosing seasonal food substitutes and paying essential expenses such as rent, transport and school fees promptly.

He also urged businesses to negotiate longer-term supply contracts with local suppliers and rely on official monthly inflation data when making pricing decisions.