Josiah
Consumer inflation in Ghana has been on a downward trend for the past four months, with the year-over-year rate dropping to 20.9% in July. This marks a 2.1 percentage point decrease from June’s 23.0%, reflecting a gradual easing of the economic pressures that were more intense in 2023.
In July, food inflation stood at 21.5%, slightly higher than the 20.5% recorded for non-food inflation. Notably, the inflation rate for imported goods was 15.6%, significantly lower than the 23.3% rate for domestically produced goods.
The steady decline in inflation, which began in March 2024 at 25.8%, indicates a gradual slowdown in price increases. Over the past five months, this consistent drop in inflation has provided some relief to both businesses and consumers during a period of heightened financial strain.
The month-over-month rate of inflation increase also slowed, rising by 2.1% from June to July 2024, compared to a 3.2% increase in May. This two-month pattern suggests that inflationary pressures are beginning to ease.
Year-over-year, food inflation has seen a significant reduction, now approximately 2.4 times lower than in August 2023. However, food prices remain slightly higher than those of non-food items.
Additionally, there is a notable disparity between the inflation rates for locally produced goods and imported goods. While imported goods experienced a 15.6% inflation rate, locally manufactured goods saw a higher rate of 23.3%.
Government Statistician Professor Samuel Kobina Annim attributed the overall decline in inflation to reductions in both the food and non-food categories, underscoring the broader impact of these decreases on the economy.
Source:Omanghana.com
