Inflation Continues Downward Trend, Reaches 20.9% in July

Ghana’s consumer inflation has continued its downward trend, reaching 20.9% year-on-year in July 2024. This marks the fourth consecutive month of decline, with a 2.1 percentage point drop from June’s 23.0%. The decrease signals a gradual easing of the economic pressures that were prevalent throughout 2023.

In July, food inflation was recorded at 21.5%, slightly higher than the 20.5% for non-food items. Notably, the inflation rate for imported goods was significantly lower at 15.6%, compared to 23.3% for locally produced items.

The sustained decline in inflation, which began in April 2024, has brought some relief to consumers and businesses, reflecting a steady cooling of price growth. The month-to-month inflation rate also showed signs of slowing, with a 2.1% increase from June to July, down from 3.2% in May.

Year-on-year, food inflation has significantly reduced, now being approximately 2.4 times lower than in August 2023. However, food prices remain slightly higher than those of non-food items. The disparity between inflation rates for locally produced and imported goods continues, with locally produced goods experiencing higher inflation.

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.