Inflation rate continued its downward trajectory in March 2026, falling to 3.2%, according to the latest data released by the Ghana Statistical Service (GSS) on Wednesday, April1, 2026.
The figure represents a marginal decline from the 3.3% recorded in February 2026 and a sharp drop from 22.4% in March 2025, underscoring a sustained easing of price pressures across the economy.
It also marks the 15th consecutive month of disinflation and the lowest inflation rate recorded since the rebasing of the Consumer Price Index (CPI) in 2021.
On a year-on-year basis, prices in March 2026 were 10.2% higher than in the same period last year.
Month-on-month, however, prices increased modestly by 0.1% between February and March, indicating relatively stable short-term price movements.
Food inflation continued to ease, declining to 2.3% from 2.4% in February. Notably, food prices fell by 0.3% over the one-month period, offering some relief to consumers.
Non-food inflation also edged down slightly to 3.9% from 4.0%, although prices within this category recorded a modest month-on-month increase of 0.3%.
Goods and services divergence
A key driver of the overall decline in inflation was the sharp slowdown in goods inflation, which fell to 1.7% from 3.2% in February. Prices of goods dropped by 1.0% over the month.
Given that goods account for nearly three-quarters of household consumption, this decline played a significant role in easing overall inflation.
In contrast, services inflation rose markedly to 7.2% from 3.7%, with prices increasing by 0.4% month-on-month, pointing to growing cost pressures in the services sector.
The data also showed a divergence between locally produced and imported goods. Inflation for locally produced items increased to 4.9% from 4.5% in February, reflecting rising domestic cost pressures.
On the other hand, imported inflation dropped significantly to -0.6% from 0.6%, suggesting easing external price pressures and possible gains from exchange rate stability.
Regional disparities
Inflation remained uneven across the country. The North East Region recorded the highest inflation rate at 8.6%, while the Savannah Region posted the lowest rate at -4.6%, indicating price declines in that area.
The GSS attributed these disparities to variations in local supply conditions, transportation costs, and market access.
Key drivers of inflation
The report highlighted that a small number of items continue to exert a disproportionate influence on overall inflation.
In March 2026, just five items – charcoal, green plantain, smoked herrings, senior secondary school fees and large onions – accounted for 61.5% of total inflation.
Similarly, the highest price increases were recorded for ginger (61%), green plantain (59%), charcoal (53%), cashew (47%) and palm fruit (39.6%).
Together, these items contributed 38.3% of the overall inflation rate.
Conversely, some items recorded significant price declines, helping to moderate inflation. Garden eggs saw prices drop by 60.3%, followed by fried fish (50.1%), porpoise (49.6%), cocoyam leaves (46.7%), and fresh okra (44.7%). These items collectively reduced overall inflation by 18.3%.
Outlook
The GSS noted that while the continued decline in inflation signals improving macroeconomic stability, targeted interventions in food systems, transportation, and market access will be critical to sustaining the trend.
It added that government, businesses and households all have roles to play in consolidating the gains, improving efficiency, and managing costs in the months ahead.
The post Inflation Hits Lowest Level Since 2021 Rebasing appeared first on The Ghanaian Chronicle.
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