Inflation Rises To 3.7% In May

Dr. Alhassan Iddrisu

 

The rate of inflation rose for the second consecutive month in May 2026, climbing to 3.7 percent from 3.4 percent in April, according to the latest Consumer Price Index (CPI) data released by the Ghana Statistical Service (GSS).

The year-on-year inflation rate increased by 0.3 percentage points, indicating a modest resurgence in price pressures after months of steady declines.

Addressing journalists at the release of the May CPI data, Government Statistician, Dr. Alhassan Iddrisu, explained that the latest figure means the average basket of goods and services purchased by households cost 3.7 percent more in May 2026 than in the same month last year.

The Consumer Price Index rose to 270.2 in May 2026 from 260.5 in May 2025, which reflects the increase in the general price level over the period.

Despite the recent uptick, Dr. Iddrisu described the broader inflation outlook as encouraging, noting that inflation has dropped significantly from 18.4 percent recorded in May 2025.

“In the space of 12 months, the rate of price increases has fallen by a remarkable 14.7 percentage points. That is one of the most encouraging stories in these numbers we are releasing today,” he said.

According to him, the sharp decline in inflation over the past year has considerably eased the burden on households that had been grappling with rising living costs.

“The pressure that was squeezing household budgets so painfully a year ago has eased dramatically,” he stated.

However, Dr. Iddrisu cautioned that the latest figures point to a slight return of inflationary pressures, with May recording the second monthly increase in inflation since December 2024.

“Compared with April 2026, when inflation was 3.4 percent, the May figure of 3.7 percent represents a rise of 0.3 percentage points,” he noted.

On a month-on-month basis, prices increased by 1.1 percent between April and May 2026, which suggested that consumers experienced moderate price increases during the period.

While acknowledging the recent rise, Dr. Iddrisu maintained that the overall trajectory of inflation remains favourable.

“The long-term trend is firmly downward and reassuring, but in the most recent months, prices have ticked up a little. Both insights are true, and we report both because our duty is to give you the full and honest picture,” he said.

A Business Desk Report

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