- Inflation Rises To 5.5% In October as Service Costs Accelerate
Ghana’s year-on-year inflation rate rose to 5.5% in October from 5.2% in September, extending the recent upward trend even as the overall consumer basket became slightly cheaper over the month.
The Ghana Statistical Service’s Consumer Price Index presentation shows that month-on-month inflation was -0.1% in October, compared with 1.1% in September. Food prices fell by 2.0% over the month, helping to offset higher costs in other parts of the basket.
The two figures measure different periods. October’s 5.5% year-on-year rate compares prices with October 2025, while the -0.1% monthly rate compares October with September 2026. The annual rate can therefore rise even when the overall price index falls slightly in a single month.
Inflation has nevertheless risen for three consecutive months since July, when it stood at 4.6%. It reached 5.0% in August and 5.2% in September before moving to 5.5% in October. The latest rate remains 2.5 percentage points below the 8.0% recorded in October 2025. It is also 2.3 percentage points above this year’s low of 3.2%, recorded in March.
The figures do not mean that prices have returned to their earlier levels. Inflation measures how quickly prices are rising, rather than how high they already are. The CPI index stood at 271.1 in October, with 2021 as the base year at 100. The index was 257.0 in October 2025, an increase of 14.2 points over the year.
The composition of October’s inflation shows that non-food prices, rather than food, are now the larger source of pressure. Non-food inflation rose to 7.9% from 6.2% in September. Food and non-alcoholic beverage inflation, by contrast, eased to 2.8% from 4.0%.
Non-food items accounted for 75.7% of October’s total inflation contribution, while food accounted for 24.3%. In practical terms, the GSS presentation estimates that about 76 pesewas of every GH¢1 of price increase came from non-food items.
Services recorded the sharpest increase among the broad categories. Services inflation climbed to 11.5% from 8.3% in September, while goods inflation eased to 3.8% from 4.2%. Over the month, service prices rose by 3.4%, while goods prices declined by 1.2%.
Transport costs were a major factor. Annual transport inflation reached 14.1%, up from 5.7% in September. The GSS presentation also recorded an 8.0% monthly increase in bus and trotro fares and a 3.4% increase in education costs during October. Transport contributed 22.5% of total inflation.
Housing, water and energy recorded inflation of 10.5% and accounted for 24.4% of the total. Food, despite its lower annual rate, contributed 24.3%. Together, these figures show why a falling food inflation rate does not necessarily translate into broad relief for households: other significant spending categories continue to rise faster.
The data on individual items reveal even greater differences. Fresh tomatoes were 119.3% more expensive than a year earlier, while guinea corn or sorghum was 28.0% cheaper. Maize prices fell by 27.2%, foreign apples by 24.5% and local rice by 14.3%.
These contrasting movements mean that the national figure may not match every household’s experience. Families who spend more on transport, rent or particular fresh foods may face a different change in their living costs from the average measured by the CPI.
Inflation also varied widely across regions. Ashanti recorded the highest rate at 9.7%, while the Northern Region recorded -0.5%, indicating that its measured prices were lower than a year earlier. Greater Accra’s rate was 4.8%. Ashanti and Greater Accra together accounted for 60.2% of the national inflation contribution, according to the presentation.
Four regions Ashanti, Eastern, Ahafo and Central recorded inflation above the national rate of 5.5%. The gap between Ashanti and Northern highlights the value of regional data when assessing the cost of living and deciding where support may be most needed.
The GSS measures prices for a basket of 307 goods and services, from kenkey to school fees. Its field officers collect prices each month from 8,337 outlets in 57 markets across all 16 regions. Items are weighted according to how much households spend on them, so a price change in a frequently purchased item can have a different effect on the overall index from a change in a less common purchase.
The October results present a mixed picture for households and businesses. The annual inflation rate remains far below its level a year ago, and the overall basket declined slightly from September. But the three-month rise in the annual rate, faster service inflation and double-digit increases in transport and housing-related costs show that price pressures have not disappeared.
For employers and workers, the inflation figure is also a reference point in wage and price discussions. The GSS presentation notes that wage increases above the inflation rate represent real gains, while increases below it mean that wages lose purchasing power, all other things being equal. Businesses also use CPI data when planning budgets, reviewing prices and assessing changes in real activity.
The October figures underline that one national rate cannot describe every household’s circumstances. Food inflation has eased, but service costs have accelerated; some staple foods are cheaper than a year ago, while tomatoes have risen sharply; and regional rates range from negative inflation in the Northern Region to 9.7% in Ashanti.
The next CPI releases will show whether October’s monthly decline signals a pause in price pressures or whether the annual rate’s three-month rise continues. For now, the headline suggests disinflation compared with a year ago, while the breakdown shows that the cost of living remains uneven across goods, services and regions.
