Ghana's inflation could drop below 5% in July - Databank research

Ghana's inflation rate is expected to ease significantly in July 2026, potentially falling below the 5.3% recorded in June, according to a new outlook by Databank Research.

According to the research firm, inflation could moderate to between 4.6% and 5.0%, driven by improving food supply conditions ahead of the August harvest season, easing petroleum prices, and favourable base effects from July 2025, when consumer prices rose more sharply.

If the projections materialise, it would mark the first easing in inflation since the start of a recent upward trend that has seen three consecutive monthly increases this year.

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Ghana's inflation climbed from 3.7% in May to 5.3% in June, with the rise attributed to higher fuel and utility costs, shortages of selected food staples, and rising prices of items such as tomatoes and fresh fish.

Databank analysts noted that services inflation played a particularly significant role in the June increase, with non-food inflation accelerating sharply from 4.1% to 6.3% year-on-year during the period.

However, the firm cautioned that the anticipated July moderation is driven by month-specific factors rather than a broad-based trend, suggesting that inflation dynamics remain sensitive to developments in food supply and energy markets.

Should the numbers come in as projected, it would offer some relief to households and businesses ahead of the main harvest season.

ID/BAI