Ghana's inflation rises to 5.5% in October after third consecutive hike

Ghana's headline inflation rate climbed to 5.5% in October 2026, marking the third consecutive month of price increases according to the Ghana Statistical Service. The year-on-year rate rose by 0.3 percentage points from the 5.2% recorded in September, though it remains significantly lower than the 8.0% seen in October 2025. This current rate stays within the Bank of Ghana’s medium-term target range despite the recent upward trend. Government Statistician Dr. Alhassan Iddrisu reported that the increase was primarily driven by non-food items, particularly in the services sector, where inflation jumped to 11.5% from 8.3% in September. Transport costs emerged as a major pressure point for households, recording a year-on-year inflation rate of 14.1% and an 8.0% increase month-on-month. Housing and other household expenses also contributed to the rising cost of living, with non-food items now accounting for 76% of the overall inflation rate. While services and housing costs surged, food inflation offered some relief by easing to 2.8% from 4.0% in September. This decline was attributed to significant price drops for staples such as guinea corn and sorghum. The data also highlighted a disparity between local and imported goods; locally produced items saw an inflation rate of 6.9%, while imported goods remained more stable at 2.4%. Locally produced goods accounted for approximately 86.4% of the total inflation recorded during the month. Geographically, the impact of inflation varied across the country, with the Ashanti Region recording the highest inflation rate at 9.7%. Despite the three-month upward trend, the Bank of Ghana has maintained its policy rate at 14%, reflecting confidence that inflation remains manageable. However, analysts and the Statistical Service suggest that the continued rise in service costs will be a critical consideration for policymakers as they prepare the upcoming 2027 Budget Statement.