Ghana’s inflation is falling: So why does food still feel so expensive?

When Ama Owusu walked out of Makola Market in Accra, she carried a shopping bag that seemed too small for the money she had just spent.

The 42-year-old trader had arrived with GH¢3,000, hoping to buy enough food to support her family for several weeks.

Instead, after purchasing rice, tomatoes, onions, cooking oil, fish and vegetables, most of the money was gone.

“Last year I could buy enough food to feed my family for a week with GH¢1,000. Today, GH¢1,000 barely lasts a few days,” she said.

Ama’s experience reflects a frustration shared by many Ghanaians.

The country’s inflation rate is falling, but for many households, food prices still feel painfully high.

So why does the economic data appear to tell a different story from what people experience at markets?

Ghana’s annual inflation rate fell to 5.3% in June 2026, according to the Ghana Statistical Service (GSS), continuing a significant decline from the record levels recorded during the country’s economic crisis.

But across markets, many consumers say they are yet to feel the impact.

Tomatoes remain expensive. Cooking oil costs more than before. Meat and other protein sources have become increasingly difficult for some families to afford.

Economists say the answer lies in understanding what inflation actually measures and the hidden costs that continue to push food prices upwards.

Falling inflation does not mean falling prices

One of the biggest misunderstandings about inflation is the belief that when inflation declines, prices should immediately become cheaper.

That is not how inflation works, says Professor Nicholas N.N. Nsowah-Nuamah, former Government Statistician.

Speaking on Executive Spotlight, he explained that inflation measures the rate at which prices are rising, not whether prices are falling.

“When you say inflation has come down, it does not mean that prices have come down. All that means is that the speed at which prices were increasing has slowed down.”

He compared inflation to a moving vehicle.

A car travelling at 120 kilometres per hour that slows down to 60 kilometres per hour is still moving forward.

“The car has slowed down, but it has not stopped. It has not started moving backwards,” he explained.

The same principle applies to prices.

If a bag of rice increased from GH¢300 to GH¢500 last year and rises slightly to GH¢520 this year, inflation has slowed but the price has not reduced.

For consumers, however, the distinction offers little comfort.

The reality they face is simple:

They are still paying more.

 The tomato that tells Ghana’s food story

At Agbogbloshie Market in Accra, tomato wholesaler Abena Mensah points to baskets of tomatoes stacked beside her stall.

For her, one product captures the reality of Ghana’s food prices. Tomatoes.

“A basket that sold for GH¢400 two years ago can now cost close to GH¢900, depending on the season,” she said.

But Abena says traders are often blamed for increases they do not control.

“We buy from farmers who are also paying more.”

Farmers are facing higher costs for fertiliser, seeds, pesticides, labour and fuel.

By the time food travels from farms to urban markets, every additional expense becomes part of the final price consumers pay.

Why transport costs remain high

Kwame Asante transports vegetables from farming communities in the Bono East Region to markets in Accra.

He says many people assume transport charges should fall immediately whenever fuel prices reduce.

But fuel, he argues, is only one part of the cost.

“What about tyres? Engine oil? Spare parts? Everything is imported.”

Many vehicle parts are purchased using foreign currency, meaning exchange rate changes often take time before they affect transport costs.

Kwame says businesses are also still recovering from previous economic pressures.

“We cannot suddenly charge less when everything in our stores was bought at old prices.”

Economists describe this as delayed price adjustment.

Even when economic conditions improve, businesses may take time to reduce prices because they are still absorbing earlier costs.

Why a stronger cedi has not reduced food prices

The Ghana cedi has strengthened against major foreign currencies in recent months, raising expectations that imported goods would become cheaper.

But economists say exchange rate improvements do not immediately translate into lower prices.

Many businesses are still selling goods purchased months earlier when the cedi was weaker.

Some companies are also using improved earnings to recover losses accumulated during periods of high inflation.

The result is that the currency improves, but prices at shops and markets often adjust much more slowly.

Climate change is adding pressure on food prices

Food prices are not driven only by inflation and exchange rates.

Weather conditions are increasingly affecting what Ghanaians pay at markets.

Farmers across the country are dealing with unpredictable rainfall, flooding, longer dry seasons and reduced yields.

Mawusi Tsitsoto, a farmer from Peki in the Volta Region, said changing weather patterns have made farming more difficult.

When farmers produce fewer tomatoes, onions, maize or vegetables, supply reduces.

And when supply falls, prices rise.

The hidden cost of moving food from farm to table

Before food reaches a consumer’s kitchen, it often passes through several stages:

Farmer.

Collector.

Transporter.

Wholesaler.

Retailer.

Each stage adds costs.

Agricultural experts say Ghana’s food distribution system continues to face challenges, including poor roads, limited storage facilities and high post-harvest losses.

When produce spoils before reaching markets, those losses are eventually reflected in the prices shoppers pay.

Families are changing what they eat

For Michael Ofori, a 35-year-old civil servant in Accra, inflation is not just an economic statistic.

It is something he experiences at the dinner table.

His family has changed the way they shop.

“We have stopped buying beef every week.”

He says his children now eat more eggs instead of meat.

Rice portions have reduced.

Fruit has become an occasional purchase.

“We are not buying less because we want to. We are buying less because we have to.”

Across Ghana, households are making similar adjustments.

Some are switching to cheaper alternatives.

Others are delaying purchases.

Some families are reducing the number of meals they eat.

Experts: Lower inflation alone is not enough

Economists say reducing inflation is an important step towards economic stability, but it will not automatically solve Ghana’s cost-of-living crisis.

They argue that the country must also tackle deeper structural problems, including:

High transport and logistics costs

Poor roads linking farms to markets

Limited irrigation systems

Expensive agricultural inputs

Weak storage infrastructure

Post-harvest losses

Inefficient food supply chains

Without these reforms, experts warn that Ghana could continue experiencing a situation where inflation falls while food remains expensive.

The gap between economic numbers and daily life

For policymakers, falling inflation is evidence that Ghana’s economy is stabilising.

But for people like Ama Owusu, recovery will only feel real when their money buys more food.

Outside Makola Market, she placed her shopping bag into a taxi.

It was lighter than she expected.

“The statistics may say one thing,” she said. “But the market tells another story.”

For millions of Ghanaians, the market remains the true measure of economic recovery.

Because inflation may be falling on paper — but the cost of living is still being counted at the dinner table.