Ghana begins 2026 with inflation at 6.3 percent and the cedi trading around GH¢10.51 per United States dollar, offering a moment of stability after months of economic adjustments. The country’s annual inflation rate decelerated for the eleventh consecutive month to 6.3 percent in November 2025, the lowest since February 2019, down from 8 percent in October.
From January’s 23.5 percent rate to just 6.3 percent in November, Ghana engineered an eleven month disinflation streak that pushed inflation to its lowest point since the Consumer Price Index (CPI) was rebased in 2021. The dramatic decline represents one of the most significant disinflation periods in the country’s recent history, outperforming the government’s own 11.9 percent end of year projection.
Food inflation posted one of the steepest declines, easing sharply from 9.5 percent in October to 6.6 percent in November. Government Statistician Alhassan Iddrisu attributed the fall to significant declines in inflation for vegetables, tubers, fish and fruits, categories that had previously exerted upward pressure on household budgets.
Non food inflation also softened, dropping from 6.9 percent to 6.1 percent in November. Inflation for locally produced items fell to 6.8 percent from 8.0 percent, while imported inflation dropped significantly to 5.0 percent from 7.8 percent, due mainly to the relatively stable cedi.
Throughout 2025, the gradual easing of inflation from double digit levels softened cost pressures on households and companies. The cedi’s relative steadiness in the final months brought predictability to importers, exporters, and firms with dollar denominated obligations, allowing businesses to plan with greater confidence and reassess strategies shaped by previous market shocks.
The Bank of Ghana’s monetary policy actions underpinned much of the disinflation momentum, cutting the policy rate by a cumulative 1,000 basis points across its last three decisions, bringing the benchmark rate down to 18 percent. These significant cuts were made possible by improving inflation expectations, declining inflationary momentum, and a stronger Ghanaian cedi which rallied against major currencies.
However, as one measure of stability settles, attention is shifting toward utility tariffs. The Public Utilities Regulatory Commission (PURC) approved a 9.86 percent increase in electricity tariffs and a 15.92 percent increase in water tariffs, effective January 1, 2026, under its 2026 to 2030 Multi Year Tariff Order (MYTO).
Energy costs, long a critical component of operating budgets, are expected to influence pricing, operational costs, and broader consumer demand. Even modest hikes in electricity can ripple across manufacturing, services, and retail sectors. Water tariff adjustments similarly affect both businesses and households adjusting to new cost structures.
The combination of easing inflation, a steady cedi, and utility tariff adjustments paints a complex picture for businesses entering 2026. Firms that followed market signals closely in 2025, adapting to currency swings and cost pressures, are positioned to navigate these shifts more effectively than those that maintained static strategies.
The inflation trajectory marks a dramatic turnaround from the crisis conditions of 2022 and early 2023. The country had been dealing with a 45 percent depreciation of the cedi against the dollar and inflation rising to a record 54 percent in December 2022. Ghana confronted the reality of a crisis that demanded decisive and coordinated reform.
The Bank of Ghana took bold measures to re anchor monetary discipline, tightening monetary policy and halting financing of the fiscal deficit, which made inflation retreat to 23 percent two years later among other fiscal side policies. The current inflation trajectory demonstrates the effectiveness of sustained policy discipline.
As Ghana enters 2026, the rhythm of the economy moves from reflection to anticipation. Stability in key indicators provides a foundation, while emerging pressures remind stakeholders that planning, monitoring, and adaptation remain central to business resilience. The year ahead presents measured opportunities alongside practical challenges requiring continued vigilance.
The question now is whether the government can maintain the fiscal and monetary discipline that enabled the dramatic inflation reduction while managing the political and social pressures that inevitably accompany utility tariff increases and broader economic reforms. The stability achieved in 2025 provides a platform, but sustaining it will require consistent policy execution throughout 2026.