Ghana’s annual inflation slowed to a 28-month low of 20.9% in July from 22.8% the previous month, according to data released by the Ghana Statistical Service on August 14.
Food inflation eased to 21.5% last month, down from 24.0% in June, while non-food inflation also saw a marginal decline, reaching 20.5%.
The Government Statistician, Samuel Kobina Annim, attributed the drop in imported goods inflation, which fell to 15.6% from 17.5%, to the stable performance of the cedi during July.
Inflation for domestically produced goods, however, remained elevated at 23.3% for the same period. Annim emphasised the key impact of the cedi’s stability on the cost of imported items, noting, “The relative stability [from June 2023 to July 2024] has contributed to lower inflation for imports.”
Five sectors recorded inflation rates above the national average, including housing, water, electricity, gas, and other fuel products (28.6%); restaurants and accommodation services (28.3%); alcoholic beverages, tobacco, and narcotics (26.8%); food and non-alcoholic beverages (21.5%); and health (21.2%).
Within the food sector, four sub-categories experienced inflation rates higher than the overall food inflation of 21.5%, particularly vegetables, tubers, plantain, cooking bananas, and pulses (41.5%), fruits and nuts (35.1%), and fruit and vegetable juices (26.7%).
Annual inflation has topped the 10% ceiling of the Bank of Ghana’s (BoG) target range for more than three years. While policymakers surprised with an interest-rate cut in January, Bloomberg writes, the have since kept the key rate unchanged at 29%.
Source: Daily Mail GH
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