For the fourth month in a row, Ghana’s consumer inflation has continued to see a steady reduction, dropping to 20.9% year-on-year in July.
On Wednesday, government statistician Samuel Kobina Annim revealed to members of the press that the drop is a result of a fall in both food and non-food inflation. The drop represents a 1.9 percentage point drop from June’s 22.8%, signalling a gradual easing of the economic pressures that intensified throughout 2023.
In July, food inflation stood at 21.5%, while non-food inflation was slightly lower at 20.5%. But the inflation rate for imported items was recorded at 15.6%, significantly lower than the 23.3% observed for locally produced goods.
This sustained decline in inflation, which began in April 2024, represents a steady flow of price growth.
On a month-to-month basis, the pace of inflation growth also slowed, with a 2.1% increase from June to July 2024, down from 3.2% in May. This two-month trend suggests that inflation is reducing.
Year-on-year data shows a significant reduction in food inflation, which is now approximately 2.4 times lower than in August 2023. However, food prices remain slightly higher than those of non-food items.
Also, locally produced goods experienced a higher inflation rate of 23.3%, compared to 15.6% for imported items.
A report by Bloomberg said, after an unexpected interest rate drop at the start of the year, Ghana’s central bank decided on maintaining the benchmark rate of 29%, as Ghana’s weak currency obscured the potential of rising consumer prices.
Another report by MyJoyOnline, revealed that the Cedi depreciated by around 19.6% against the US dollar in the interbank currency market as of July 2024, according to the Bank of Ghana.
In spite of this, the steady drop in inflation over the past four months has brought some relief to consumers and businesses alike.
