Ghana consumer inflation sinks to five-year low

Ghana's consumer inflation slowed further to 3.8%in January, extending a 13-month disinflation streak and reaching its lowest level since the consumer price index was rebased in 2021, official data showed.

Prices rose just 0.2% month-on-month, according to the Ghana Statistical Service, reflecting broad easing across both food and non-food items.

Food inflation slowed to 3.9% year-on-year, while non-food prices fell by 0.4% compared with the previous month.

A stronger currency, lower import costs and improved food supply have favouredthis steady inflation decline.

Over the past year, Ghana has also pursued tighter monetary policy, as well as fiscal reforms tied to the country’s International Monetary Fund Programme.

Ghana, a major producer of gold and cocoa, is emerging from one of its worst economic crisesin decades, marked by soaring prices, debt restructuring and an IMF-backed recovery plan.

Lower inflation is expected to ease pressure on households and businesses, though policymakers have said they remain cautious.