By Issah Olegor
The recent progress in bringing inflation under control could face fresh challenges in the coming months as economists and policymakers monitor the impact of changes in fuel pricing and transport costs.
Government Statistician Dr. Alhassan Iddrisu has cautioned that the partial withdrawal of the government’s fuel price relief programme, coupled with proposed increases in transport fares, could place renewed upward pressure on consumer prices and test the country’s inflation gains in June.
The warning follows the latest inflation figures released by the qrising for a second consecutive month from 3.4 percent in April to 3.7 percent in May 2026.
Although inflation remains significantly lower than the 18.4 percent recorded during the same period last year, the latest increase has raised concerns that the country’s prolonged disinflation trend may be beginning to lose momentum.
Speaking during the release of the Consumer Price Index (CPI) data, Dr. Iddrisu explained that government interventions in the petroleum sector had played a crucial role in containing inflationary pressures in recent months.
According to him, the temporary suspension of selected margins and levies on ex-pump petroleum prices, which took effect on April 16, 2026, helped stabilize fuel prices and reduce the impact of rising food costs on consumers.
However, he noted that the situation could change following the government’s decision to partially withdraw the fuel relief measures from May 16, 2026.
Dr. Iddrisu indicated that the reduction in fuel support is likely to influence inflation figures for June as transportation and distribution costs begin to adjust to the new pricing regime.
Under the temporary intervention introduced in April, government absorbed GH¢2.00 per litre on diesel and GH¢0.36 per litre on petrol in an effort to shield consumers and businesses from increasing global petroleum prices.
The support package was later scaled back, reducing diesel subsidies to GH¢1.07 per litre, a move analysts believe could gradually increase operational costs across various sectors of the economy.
The concerns come at a time when transport operators are pushing for a 20 percent increase in public transport fares, citing rising fuel prices, higher maintenance costs, and increasing prices of vehicle spare parts. Industry players argue that existing fares are no longer sustainable given the current economic environment and the cost of operating commercial vehicles.
Economic observers warn that any increase in transport fares could have far-reaching consequences beyond the transport sector.
Since transportation affects the movement of goods and services across the country, higher fares could lead to increased prices of food, consumer goods, and other essential commodities, thereby contributing to inflationary pressures.
Dr. Iddrisu noted that transportation costs have so far served as an important buffer against rising food prices.
He explained that although some food items, particularly vegetables such as tomatoes, experienced significant price increases, relatively stable transport costs helped prevent those increases from having a larger impact on overall inflation.
He further stressed that headline inflation figures do not always reflect the diverse experiences of households across the country.
According to him, while some consumers may experience relief through stable fuel and transport costs, others may simultaneously face rising prices for essential food items and household goods.
