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Inflation continues downward trend, reaches 20.9% in July
Ghana’s consumer inflation has continued its downward trajectory, dropping to 20.9% year-on-year in July, marking the fourth consecutive month of decline.
This represents a 2.1 percentage point decrease from June’s 23.0%, signalling a gradual easing of the economic pressures that intensified throughout 2023.
In July, food inflation stood at 21.5%, while non-food inflation was slightly lower at 20.5%. Interestingly, the inflation rate for imported items was recorded at 15.6%, significantly lower than the 23.3% observed for locally produced goods.
This sustained decline in inflation, which began in March 2024 when the rate was 25.8%, indicates a steady cooling of price growth.
Over the past five months, the consistent drop in inflation has brought some relief to consumers and businesses alike, after a period of heightened economic strain.
On a month-to-month basis, the pace of inflation growth also slowed, with a 2.1% increase from June to July 2024, down from 3.2% in May. This two-month trend suggests that the inflationary pressures are beginning to ease.
Year-on-year data shows a significant reduction in food inflation, which is 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. Locally produced goods experienced 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 decreases in both food and non-food categories, emphasizing the broader impact of these reductions on the economy.