For Ghanaian households, January 2026 brought a continuation of a trend that has quietly reshaped the cost of getting from point A to B, as transport prices declined for the eighth consecutive month, according to data released by the Ghana Statistical Service (GSS) on Wednesday, February 5, 2026.
Transport costs declined 5.9 percent year on year in January, extending a deflationary streak that began mid 2025. The latest figures position transport as the only major non food category recording sustained deflation, a standout amid a landscape where most goods and services continued to climb.
In December 2025, transport prices had already dropped 5.0 percent annually, signaling a slowdown from the double digit increases seen at the start of 2025. At its peak, in January 2025, transport inflation reached 16.9 percent, climbing briefly to 17.9 percent in February, before beginning a dramatic reversal. By June 2025, prices had slipped into negative territory at negative 2.1 percent, and deflation deepened to negative 7.7 percent in July, before stabilizing slightly in the months that followed.
This prolonged deflation sets transport apart from nearly all other non food categories. While moving around Ghana has become cheaper, housing, water, electricity, gas and other fuels rose 9.3 percent annually in January 2026. Recreation, sport and culture climbed 10.7 percent, and insurance and financial services surged 8.0 percent. Even everyday services such as restaurants, education, and health recorded steady annual gains, highlighting the uneven pace of price changes across the economy.
The fall in transport costs may reflect lower fuel prices, reduced logistics costs, or adjustments in public and private transport fares, offering a rare respite for consumers amid persistent inflation in other sectors. Transport prices dropped 1.7 percent on a month on month basis between December 2025 and January 2026, indicating continued downward pressure on fares and logistics expenses.
The transport deflation story unfolds against a broader economic backdrop of historic disinflation. Ghana’s overall inflation rate fell to 3.8 percent in January 2026, the lowest level recorded since 2021 and the 13th consecutive month of decline. The January figure represents a sharp 1.6 percentage point reduction from the 5.4 percent recorded in December 2025, and a dramatic 19.7 percentage point drop from the 23.5 percent recorded in January 2025.
Government Statistician Dr. Alhassan Iddrisu, presenting the January 2026 Consumer Price Index (CPI) and inflation report, attributed regional transport cost differences to variations in local supply, transport infrastructure quality, and market access. The GSS has urged government to invest in transport infrastructure to reduce regional price disparities and consolidate inflation gains.
Both food and non food inflation eased to 3.9 percent in January, down from 4.9 percent and 5.8 percent respectively in December 2025. Food prices rose 1.1 percent on a month on month basis, while non food prices dipped 0.4 percent, reflecting the continued moderation in transport, utilities, and other service costs.
The transport sector’s deflationary performance contrasts sharply with inflationary pressures in other key categories. Housing, water, electricity, gas and other fuels, which together represent a significant portion of household budgets, increased 9.3 percent year on year. Furnishings, household equipment, and routine household maintenance rose 1.6 percent, while clothing and footwear increased 3.5 percent.
Communication costs declined 0.5 percent annually, making it one of the few other categories to record negative price movements alongside transport. Alcoholic beverages, tobacco and narcotics increased 4.3 percent, restaurants and accommodation services climbed 5.9 percent, and miscellaneous goods and services rose 3.4 percent.
The story of transport is not just one of price decline but a mirror of broader economic currents shaping Ghana, from shifting energy costs to consumer behavior. Crude oil prices on the international market have moderated from peak levels reached in 2024, providing relief to importers and potentially contributing to lower fuel pump prices and transport fares.
Additionally, the appreciation of the Ghana cedi against major currencies in recent months, combined with improved supply chain logistics and reduced business operating costs, may have enabled transport operators to reduce fares. Government fuel subsidy policies and regulatory interventions in the transport sector may also have played a role in moderating price increases.
However, experts caution that transport deflation could face headwinds in coming months. The Bank of Ghana has identified potential spillover risks, including upward adjustments in utility prices and continued commodity market volatility. Ghana relies heavily on imported crude oil, and a sustained rise in global oil prices could increase transportation and production costs, potentially undermining recent gains.
Regional inflation patterns show notable disparities in transport cost trends. The Savannah Region recorded the lowest overall inflation rate at negative 2.6 percent in January, while the North East Region posted the highest at 11.2 percent. The GSS attributed these gaps to differences in local supply, transport costs, and market access, reinforcing the role of infrastructure and logistics in shaping regional price dynamics.
The transport sector’s deflationary performance offers tangible relief to households and businesses that depend on mobility for work, trade and daily life. For a market trader in Kumasi traveling weekly to Accra for supplies, lower transport costs mean better profit margins. For a logistics company operating cross country routes, reduced fuel and operational expenses improve competitiveness.
Yet transport deflation also carries potential risks. Prolonged price declines could signal weak demand in the sector, potentially affecting employment and investment in transport infrastructure and services. Transport operators have raised concerns about squeezed profit margins and the sustainability of current fare levels given rising vehicle maintenance costs and other operational expenses.
By the close of January 2026, transport remained the only major non food category recording sustained deflation, underscoring its unique position in Ghana’s inflation landscape. Whether this trend persists will depend on the trajectory of global fuel prices, exchange rate stability, government policies, and broader economic recovery dynamics in the months ahead.
