Economist and lecturer at the University of Education, Winneba School of Business, Samuel Gameli Gadzo, has warned that rising fuel and transport costs could push inflation higher in November, despite the rate remaining in single digits.
Speaking on Globe TV’s News Lens on Thursday, November 5, 2026, Gadzo said the 5.5% inflation rate was not a major cause for alarm but required attention to prevent further increases.”We need to improve but not necessarily a major cause for concern,” he said.
He pointed to fuel prices, transport fares, utility costs and exchange-rate pressures as factors contributing to rising living costs.
Citing the inflation figures Gadzo said non-food inflation had increased to 7.9% from 6.2%, while food inflation had declined to 2.8% from 4.0%.
He identified transport as a key source of pressure and warned that higher fuel costs could eventually affect food prices through increased distribution expenses.
According to him, an increase in public transport fares, which he said took effect on September 6, was among the factors contributing to the latest inflation movement.
Gadzo also cited a weakening cedi and higher water and energy costs as additional pressures on households and businesses.
He cautioned that the decline in food inflation might not be sustained if transport and fuel costs continued to rise.
Gadzo said he expected a marginal increase in inflation in November, pointing to what he described as heightened tensions in the Middle East and the associated risks to global oil supplies. “I am expecting a marginal increase for the month of November as well,” he added.
He warned that sustained increases in international oil prices could feed into domestic pump prices, transport fares and, ultimately, the cost of food and other goods.
Rather than assuming the pressures would be short-lived, he urged the government to consider measures to cushion households against higher costs.
Without an effective response, he cautioned, inflation could rise above the approximately 8% target.
Gadzo also explained that a lower inflation rate should not be confused with a reduction in the general price level.
He said inflation measures how quickly prices rise, meaning that a slowdown in inflation does not erase increases accumulated in previous years.
Using an illustration, he explained that an item priced at GH¢100 a year earlier would cost GH¢105.50 if its price increased at the same rate as annual inflation of 5.5%.
He noted that inflation is an average measure, rather than the exact price change for every product.
“The issue is that prices of goods and services will not reduce if you are experiencing inflation,” he said, distinguishing continued price increases from deflation, or a decline in the general price level.
Ghana’s year-on-year inflation rate increased to 5.5% in October 2026, from 5.2% in September, as rising non-food and services inflation outweighed a further easing in food prices.
The latest figures, by to the Ghana Statistical Service (GSS), represent a 0.3 percentage point increase in the headline rate.
However, inflation remains 2.5 percentage points lower than the 8% recorded in October 2025.
The increase points to a shift in the sources of price pressure, with food inflation slowing while costs in other parts of the economy continue to rise.
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