Ghana’s inflation drops marginally to 20.9% in July

After declining for four months in a row, consumer inflation in Ghana dropped to 20.9% in July on an annual basis.

With this figure, the economic pressures that peaked during 2023 are gradually abating. It is a 2.1 percentage point drop from June’s 23.0 percent.

August had a slightly lower non-food inflation rate of 20.5% compared to July’s 21.5 percent food inflation rate.

The inflation rate for imported commodities was notably much lower—15.6 percent—than for domestically manufactured goods, which showed an inflation rate of 23.3%.

Following a time of increased economic stress, individuals and companies might find some respite from inflation thanks to the gradual reduction that started in April 2024.

The steady decline in inflation over the last four months has highlighted a slowdown in price increases and instilled confidence in the market.

The rate of inflation rise also decreased month over month, rising by 2.1% between June and July 2024 as opposed to 3.2% in May.

This two-month trend adds to the optimism by indicating that inflationary pressures may be starting to decline.

Food inflation has significantly decreased year over year, and it is currently around 2.4 times lower than it was in August 2023.

But despite these continued difficulties in the food industry, food costs are still somewhat higher than those of non-food commodities.

There is also a significant difference in the rates of inflation for commodities that are imported and those that are produced locally. The inflation rate for locally produced goods was greater than that of imported goods (15.6% vs. 23.3%), indicating the particular challenges faced by indigenous manufacturers.

Professor Samuel Kobina Annim, a government statistician, highlighted the wider effects of these declines on the economy by attributing the total decline in inflation to cuts in both the food and non-food categories.

Source: Ghanatodayonline.com