Ghana has recorded a dip in the inflation rate for the first time in three months after consecutive increases.

The inflation rate slowed to 4.6% in July, marking a renewed easing in consumer price pressures across the economy.

According to the Ghana Statistical Service (GSS) Monthly Consumer Price Index (CPI) Report, Ghana's headline inflation declined by 0.7 percentage points in July, falling from 5.3% in June to 4.6%.

GSS explained that even though the prices of goods continue to increase, they are doing so at a slower pace, providing some relief for consumers.

It also reinforces expectations that inflation could remain comfortably within the Bank of Ghana's medium-term target band of 8 ± 2 percent, provided current macroeconomic conditions are sustained.

The moderation in inflation was driven by slower price increases across both food and non-food categories.

Food inflation declined to 3.1% in July from 3.9% in June, while non-food inflation eased marginally to 6.1%, compared with 6.3% a month earlier.

The data also show that services inflation, which covers transport, rent, education, healthcare, haircuts and internet services, declined from 9.4% in June to 8.5%, reflecting slower increases in the cost of services.

On the other hand, inflation for locally produced goods stood at 5.9%, significantly higher than the 2.0% recorded for imported goods. This means inflation for locally produced goods was 3.9 percentage points higher than that of imported goods.

GSS also noted that while the prices of services continue to increase, they are doing so at a slower pace. It added that locally produced goods recorded higher inflation than imported goods, largely because the Ghana cedi has remained relatively stable and global price pressures have eased.

Government Statistician Dr Alhassan Iddrisu said food and non-alcoholic beverages remained the biggest driver of inflation, accounting for 32.4% of the overall increase in prices across the 13 divisions of the Consumer Price Index (CPI).

The report also showed differences in inflation across the country's regions.

The North East Region recorded the highest inflation rate at 10.8%, while the Bono East Region recorded the lowest at -3.8%, meaning prices in the region were, on average, lower than they were during the same period last year.

The latest inflation figures suggest that price increases are slowing, a development expected to improve consumers' purchasing power, boost business confidence and create a more stable environment for investment.

BoG forecasts inflation to remain within target

The Bank of Ghana (BoG) said it was optimistic that inflation would gradually return to its medium-term target range of 8%, plus or minus two percentage points, provided there were no major economic disruptions.

The central bank, however, cautioned that ongoing geopolitical developments, particularly tensions in the Middle East, continue to pose risks to the inflation outlook and could influence future price stability.

Details contained in the Bank's May 2026 Monetary Policy Report showed that inflation recorded a slight increase in April 2026 after several months of consistent decline. The report noted that this was the first rise in the inflation rate since the downward trend began in December 2024.

According to the BoG, the increase was largely linked to higher prices within the non-food segment of the Consumer Price Index (CPI), while food prices continued to moderate.

Food inflation eased from 2.3% in March to 2.2% in April, supported by improved agricultural output and favourable harvests. In contrast, non-food inflation rose to 4.2% from 3.9% over the same period, mainly due to increases in utility-related costs.

Despite the modest rise in headline inflation, the Bank indicated that underlying inflationary pressures remained contained. Measures of core inflation, which exclude the impact of volatile items such as energy and utilities, continued to trend downward, suggesting that price increases were not widespread across the economy.

The report further noted that alternative core inflation indicators that exclude food items remained above the headline inflation rate, standing at 4.2% and 4.7%, respectively, in April 2026.

The Bank maintained that sustaining prudent monetary policy measures would be essential to keeping inflation on a downward path and achieving its medium-term objective.