Inflation drops from 5.3% to 4.6% in July
Inflation Falls to Lowest Level in Recent Months as coast pressures ease
Ghana’s inflation rate declined to 4.6% in July 2026, down from 5.3% in June and significantly lower than the 12.1% recorded in July 2025, Government Statistician Dr Alhassan Iddrissu has announced. The latest figures indicate that while the cost of goods and services continues to rise, the pace of those increases has slowed considerably. According to Dr Alhassan, prices are now increasing at a little over one-third of the rate recorded a year ago. He cautioned, however, that lower inflation does not mean prices have fallen. “Lower inflation is not lower prices: the relief is in the pace, not yet in the price tag,” he explained.
Monthly Price Increases Remain Minimal
Data from the Ghana Statistical Service show that between June and July 2026, the general price level increased by 0.1%, an improvement from the 0.2% monthly rise recorded in June. While the year-on-year inflation rate compares current prices with those of July last year, the month-on-month figure reflects the actual changes consumers experienced over the past four weeks. “The pressure has moved off the market shelf and onto the monthly bill,” Dr Alhassan noted, suggesting that although food prices have become relatively stable, households continue to face rising costs in essential services.
Services Continue to Drive Inflation
The report reveals that services inflation stood at 8.5%, significantly higher than the 3.4% recorded for goods, making services the main driver of overall inflation in July. Non-food items contributed 67.6% of the month’s inflation, highlighting that rising living costs are increasingly linked to services rather than consumer goods.
Housing and Rent Lead Cost Pressures
Among the various spending categories, housing, water, electricity and gas recorded an inflation rate of 8.3%, accounting for 22.8% of headline inflation. Within this category, rent payments alone contributed 13.0%, making accommodation the single largest contributor to inflation during the month. Other major sources of cost pressure included school fees, transport fares and utility charges, underscoring the continued burden on household budgets despite the overall decline in inflation.
Local Products Account for Most Price Increases
The report also shows that locally produced goods and services recorded an inflation rate of 5.9% and accounted for 86.7% of July’s inflation. In contrast, imported items posted a relatively low inflation rate of 2.0%, contributing just 13.3% to overall inflation. The figures suggest that domestic factors, rather than exchange rate movements or imported inflation, were the primary drivers of price increases during the month.
Outlook
The continued decline in inflation offers encouraging signs of improving price stability and easing inflationary pressures. However, with rents, utilities, education and transport costs still rising faster than many other expenses, households may continue to feel financial strain even as the overall inflation rate moderates. The latest data indicate that while inflation is slowing, the cost of living remains a significant concern for many Ghanaians.
