Ghana’s inflation rate eased to 3.8 per cent year-on-year in January, extending its disinflation streak to 13 consecutive months and strengthening signs of price stability in the West African economy, even as neighbouring Nigeria eyes a single-digit inflation figure.
Fresh data released on Wednesday by the Ghana Statistical Service (GSS) showed inflation fell sharply from 5.4 per cent recorded in December, driven largely by a significant slowdown in food prices.
The latest reading marks Ghana’s lowest inflation level since the country rebased its Consumer Price Index in 2021 and represents a dramatic turnaround from the acute inflation crisis that rocked the economy just two years ago.
By contrast, Nigeria, ranked as West Africa’s largest economy, is still grappling with elevated price pressures fuelled by currency depreciation, high energy costs, food supply disruptions and structural bottlenecks, leaving households under persistent cost-of-living strain.
Ghana’s Inflation decline linked to food prices
Government Statistician, Alhassan Iddrisu, said the January outcome reflects a broad-based moderation in prices across major components of the consumer basket.
Food inflation, which has historically been the biggest driver of headline inflation, slowed to 3.9 per cent, contributing most to the 1.6 percentage-point drop recorded in January.
“The sustained decline signals that Ghana is firmly on a path towards price stability,” Iddrisu said.
Ghana’s recent progress follows a turbulent period marked by macroeconomic instability.
Inflation surged in the aftermath of the COVID-19 pandemic and worsened through 2022 amid sharp currency depreciation, rising public debt and mounting fiscal pressures. Prices peaked at a record 54.1 per cent in December 2022, eroding purchasing power and triggering widespread hardship.
The crisis forced the government to default on parts of its sovereign debt and embark on both domestic and external debt restructuring, alongside a three-year support programme with the International Monetary Fund (IMF).
Since then, tighter monetary policy, fiscal consolidation and improved exchange rate stability have helped reverse inflationary pressures and restore investor confidence.
