Ghana’s inflation rate has fallen by more than half over the past year, dropping from 11.5% in August 2025 to 5.0% in August 2026, according to the Ghana Statistical Service (GSS).
The latest figure means inflation has declined by 6.5 percentage points over the 12-month period, despite edging up from 4.6% in July 2026.
The GSS described the 12-month movement as a significant decline in inflation, with the rate reaching a low of 3.2% in March 2026 before rising through April, May and June.
It subsequently fell to 4.6% in July, but increased again to 5.0% in August.
While the annual inflation rate increased in August, the monthly data showed a different picture.
Prices measured by the consumer basket fell by 1.0% between July and August 2026, compared with a 0.1% increase recorded between June and July.
Food prices were particularly notable, with food inflation declining to 3.0% in August, down marginally from 3.1% in July.
The sharp fall in food inflation over the year has also contributed significantly to the improvement in the overall inflation picture.
Food inflation stood at 14.8% a year earlier, but had dropped to 3.0% by August 2026. Prices of some food items fell considerably over the period, including lime, which declined by 33.7%, and maize, which fell by 31.3%.
However, the GSS data show that inflationary pressure has increasingly shifted toward non-food items.
Non-food inflation rose to 6.8% in August, up from 6.1% in July, while services inflation reached 8.6%, compared with 8.5% in July.
The GSS says services remain the most stubborn part of the inflation basket and a key risk to further disinflation.
Housing, water and energy was the biggest contributor to overall inflation in August, accounting for 29.4%, followed by food and beverages at 29.1%.
The latest figures also show that inflationary pressures are largely domestic. Locally produced items recorded inflation of 6.1%, compared with just 2.2% for imported items, with locally produced items accounting for 86.2% of total inflation.
Despite the August increase, the GSS says the lower inflation environment presents an opportunity for households, businesses and government to plan with greater confidence.
For households, it recommends using the slower pace of food price increases to save and budget, while keeping a close eye on services such as transport, rent and school fees.
