Ghana’s consumer inflation has continued its downward trend, falling to 20.9% year-on-year in July, marking the fourth consecutive month of decline. This represents a 2.1 percentage point drop from June’s 23.0%, indicating a gradual easing of the economic pressures that intensified throughout 2023.
In July, food inflation was recorded at 21.5%, slightly higher than non-food inflation, which stood at 20.5%. Notably, the inflation rate for imported items was 15.6%, significantly lower than the 23.3% observed for locally produced goods.
This ongoing decline in inflation, which began in March 2024 when the rate was 25.8%, signals a steady cooling of price growth. Over the past five months, this consistent drop has brought some relief to consumers and businesses after a period of intense economic strain.
Month-to-month, inflation growth also slowed, with a 2.1% increase from June to July 2024, down from 3.2% in May. This trend over the past two months suggests that inflationary pressures are beginning to ease.
Year-on-year data shows a significant reduction in food inflation, now approximately 2.4 times lower than in August 2023. However, food prices remain slightly higher than those of non-food items. Additionally, the disparity between inflation rates for locally produced and imported goods is notable, with locally produced goods experiencing a higher inflation rate of 23.3% compared to 15.6% for imported items.
Government Statistician, Professor Samuel Kobina Annim, attributed the overall decline in inflation to reductions in both food and non-food categories, highlighting the broader impact of these decreases on the economy.
