By Adnan Adams Mohammed
In a milestone for Ghana’s macroeconomic recovery, year-on-year inflation plummeted to 3.3% in February 2026, marking the lowest rate since the Consumer Price Index (CPI) rebasing in 2021.
The latest data from the Ghana Statistical Service (GSS) reveals a staggering 19.8 percentage point drop from the 23.1% recorded exactly one year ago. This 14th consecutive monthly decline signals a sustained easing of price pressures that has significantly bolstered the Bank of Ghana’s (BoG) recent policy stance.
The disinflation trend was largely driven by a cooling food market and the stability of imported goods.
Food Inflation: Dropped to 2.4% from 3.9% in January.
Imported Items: Saw a sharp easing to 0.6%, credited largely to the cedi’s strong performance.
Regional Variance: The Savannah Region recorded the country’s lowest rate at -2.6%, while the North East Region hit a high of 8.9%.
“A price worth paying”
Reacting to the figures, Bank of Ghana Governor Dr. Johnson Asiama attributed the record lows to “prudent management,” specifically pointing to the sharp appreciation of the cedi and aggressive monetary sterilization measures.
Addressing recent concerns regarding the central bank’s financial losses and the costs of the Gold for Reserve (G4R) programme, Dr. Asiama was candid about the trade-offs involved in resetting the economy.
“This was delivered at a cost,” the Governor noted in an explanatory note. “But what is the real benefit to the economy? We have achieved historically low inflation and a cedi that has appreciated by more than 40%—the best performance in our history.”
Outlook: A leaner, stronger 2026
Dr. Asiama expressed confidence that the heavy fiscal lifting is over. He projected that as inflation settles at the lower end of the BoG’s 8 ± 2% medium-term target, the costs of maintaining these levels will “drop sharply.”
Key pillars for the BoG’s 2026 outlook include:
Reduced Sterilization Costs: With inflation at 3.3%, the policy rate is expected to decline, lowering the cost of mopping up excess liquidity.
Gold for Reserve Reforms: Fees and charges for the G4R program have already been halved.
Cedi Stability: The BoG expects the currency to remain stable throughout the year, preventing a repeat of previous valuation-led losses.
While some analysts warn that the aggressive policy interventions came at a high institutional cost to the central bank, the GSS data suggests that for the average Ghanaian consumer, the “reset” is finally yielding tangible relief at the marketplace.
At a glance: Ghana’s inflation journey
Period Inflation Rate Milestone
February 2025 23.1% Post-Crisis Peak
January 2026 3.8% Targeting the Lower Bound
February 2026 3.3% Lowest since 2021 Rebasing
