Audio By Carbonatix
Dr Seyram Kawor, a senior lecturer at the University of Cape Coast (UCC) Business School, says Ghana’s latest inflation figures signal a slowdown in the pace of price increases rather than an actual drop in prices.
Speaking on JoyNews’ Desk on Wednesday, 5 February, Dr Kawor noted that Ghana’s headline inflation rate eased to 3.8 per cent in January 2026, consistent with earlier forecasts by the International Monetary Fund (IMF) and the Bank of Ghana (BoG).
“The latest inflationary figures did not surprise me much. The IMF and the Bank of Ghana themselves projected an inflation rate of between 6% and 10%, so this outcome was expected,” he said.
Dr Kawor explained that although inflation has slowed due to sustained tight monetary policy, it does not mean prices in the market will fall.
“What it means is that prices in the market will continue to go up, but at a very slow rate. It does not mean prices should come down,” he said.
He attributed some of the moderation in inflation to relative stability in the foreign exchange market, with the cedi remaining steadier over time, helping to contain imported price pressures.
Dr Kawor also pointed to a significant drop in food inflation, noting it has fallen to around 3.9 per cent, driven by improved harvests.
“We have seen better harvests, and that is also contributing to the pricing we are seeing today,” he said.
The UCC lecturer further highlighted the role of the Bank of Ghana’s monetary policy stance and improvements in external reserves—now covering four to five months of imports—as key factors in the inflation trend.
“The medicine from the Central Bank—the tighter monetary policy and the improved reserves—are all factors contributing to the inflation rate we are seeing in January,” Dr Kawor added.
He stressed that the gradual decline has been consistent over time, underscoring why the latest figures were not surprising.
“When you look at the trend, the drop has been consistent over the years. For that matter, this development does not surprise me at all,” he said.
The inflation reading comes as Ghana continues its economic recovery, with price stability viewed as essential to easing cost-of-living pressures on households and businesses.
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