Associate Professor of Economics at the University of Ghana, Prof Festus Ebo Turkson, has clarified that Ghana’s recent decline in inflation does not mean goods and services have suddenly become cheaper on the market.

Speaking on Joy FM’s Middaynews on Thursday, Prof Turkson explained that inflation measures the rate at which prices increase, and a reduction only indicates that prices are rising more slowly than before.

He noted that consumers may still feel prices remain high because inflation reduction does not translate into immediate price cuts.

“When inflation is reducing, it doesn’t mean prices are reducing. It means the rate at which prices are increasing has slowed down compared to last year.”

Prof Turkson further pointed out that inflation figures released by the Ghana Statistical Service are based on a basket of goods typically consumed by households. Within that basket, some prices may fall — particularly imported goods when the cedi strengthens — while others may rise sharply due to supply or production challenges, he added.

“You may find ginger prices increasing much higher than what the inflation rate is talking about,” he said, adding that individual items can behave differently from the overall inflation trend.

Touching on concerns raised by the Minority in Parliament that official inflation figures do not reflect realities on the ground, Prof Turkson acknowledged that prices have not reduced, but insisted the data remains valid.

“If inflation has dropped to 3.8%, it doesn’t mean prices are reducing. So if someone says prices have not reduced, that is fine.”

However, he argued that it would be unfair to dismiss the report simply because consumers are not yet seeing lower prices.

“The point is that relative to a year ago, the extent to which prices are increasing is certainly lower now,” he explained.

Prof Turkson cautioned that Ghanaians should not expect inflation figures to immediately reflect in their pockets, noting that the benefit is often gradual.

He added that lower inflation brings stability, which could eventually influence the Bank of Ghana to reduce interest rates, making credit cheaper for businesses and supporting economic activity.

He also explained that consumers may benefit indirectly over time, especially if incomes rise faster than inflation, improving purchasing power.

Consumer Price Index (CPI) data showed that Ghana’s inflation rate fell significantly to 3.8 percent in January 2026. The figure represents the 13th consecutive decline and the lowest inflation rate recorded since the rebasing of prices in 2021.