Ghana’s inflation rate has fallen significantly to 3.3 percent in February 2026, marking one of the sharpest declines in recent years and signalling improving economic stability in the country. The slowdown follows months of monetary tightening by the Bank of Ghana, improved fiscal discipline under the International Monetary Fund (IMF) programme, and a stronger performance of the Ghanaian cedi, which has helped reduce import costs and ease pressure on consumer prices. Analysts say the development represents a major turnaround for the West African economy, which recorded inflation levels as high as 54 percent in 2022 during the height of its economic crisis.
Speaking during an interview with ARISE News on Thursday, business journalist and analyst Winston Tackie, who joined the programme from Ghana, said a combination of monetary policy adjustments, improved exchange rate stability and lower food inflation contributed to the sharp decline in inflation recorded in February.
According to him, the Bank of Ghana’s decision to reduce its policy rate helped ease borrowing conditions and slow spending pressures across the economy. Tackie noted that the reference rate used by commercial banks to price loans dropped from 14.58 percent to 11.71 percent, helping reduce inflationary pressure on goods and services.
He also explained that the government’s fiscal discipline under the IMF-supported programme has helped limit excess liquidity in the economy, thereby stabilising macroeconomic conditions.
Another key factor, he said, was the improved performance of the Ghanaian cedi, which appreciated significantly in 2025 and has remained relatively stable in early 2026. Since Ghana relies heavily on imports for many essential goods, a stronger currency has helped reduce the cost of imported products such as fuel and food.
Tackie further noted that food inflation slowed sharply, falling from 18.8 percent to about 4 percent, which significantly contributed to the overall decline in headline inflation.
Despite the improvement in inflation figures, he acknowledged that many Ghanaians are still struggling with the high cost of living because lower inflation does not necessarily mean prices have fallen.
“Inflation simply means prices are rising more slowly,” he explained, noting that although the pace of price increases has reduced, many goods that became expensive during the inflation crisis have not yet returned to their previous price levels.
Tackie added that some staple foods such as rice have recorded price reductions in recent months, while the relative stability in fuel prices has also helped ease transportation costs for consumers.
Triumph Ojo
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