Charcoal prices surge to become Ghana's biggest inflation driver

Charcoal has become the single largest contributor to inflation in Ghana, with prices rising by more than 50% over the past year, according to Government Statistician Dr Alhassan Iddrisu, who has warned that mounting food costs could threaten the country's recent progress in taming inflation.

The disclosure comes as Ghana records one of its strongest inflation performances in recent years, with overall price pressures continuing to ease.

Speaking on JoyNews' PM Express Business Edition, Dr Iddrisu described the country's inflation turnaround as significant but cautioned that emerging pressures in food markets are beginning to raise concerns.

"By all standards, this is a remarkable turnaround, and every Ghanaian should know this," he said.

However, beneath the improving headline figures, food inflation accelerated in May, reversing the broader downward trend.

According to the Government Statistician, food inflation rose to 3.3% year-on-year in May 2026 from 2.2% in April.

More strikingly, food prices increased by 2% within a single month between April and May one of the fastest monthly increases recorded in recent times.

"We saw food prices jump 2% in just one month, and that is one of the fastest increases we have seen recently," Dr Iddrisu said, adding that the Ghana Statistical Service was closely monitoring developments.

Tomato prices surge after supply disruptions

A key driver of the increase was tomatoes, one of Ghana's most widely consumed food products.

Dr Iddrisu said tomato prices rose by 35.8% between May 2025 and May 2026, while recording an even sharper increase of 38.8% between April and May this year alone.

He attributed the spike to supply disruptions linked to events in neighbouring Burkina Faso, a major source of tomato imports into Ghana.

Earlier this year, Ghanaian traders operating in Burkina Faso were attacked, prompting restrictions on exports that disrupted supplies to Ghanaian markets.

Although the restrictions were lifted in April, Dr Iddrisu said the supply shock had already pushed prices significantly higher.

"As we all know, earlier this year, Ghanaian traders were attacked in Burkina Faso, and an export ban followed that disrupted tomato supply into our market. Even after the ban was reversed, the damage had already been done and prices had already spiked," he said.

Household budgets under pressure

While food prices remain a concern, Dr Iddrisu identified charcoal as the most significant inflation driver in the country.

The sharp increase in charcoal prices has placed additional pressure on household budgets, particularly among low-income families who continue to rely on the fuel for cooking.

The development highlights the uneven nature of Ghana's inflation recovery, where overall price stability is improving but essential household items continue to record substantial increases.

Economists say sustained increases in food and cooking fuel prices could affect consumer spending and erode some of the benefits of the country's recent gains in controlling inflation.

The latest figures suggest that while Ghana's broader inflation outlook is improving, policymakers may face fresh challenges in containing price pressures in key household consumption categories.