Inflation Slows As It Dips To 40.1%

Ghana’s inflation rate has seen a dip for the first time in five months.

The inflation rate for August 2023 dropped to 40.1 percent according to data put out by the Ghana Statistical Service (GSS).

This is down from 43.1% in July 2023.

The dip reflected in non-food and imported items, however, there was a surge in food and locally produced items compared to July, per the data from the GSS.

Food inflation moved up to 51.9%; Non-food inflation (0.573) was 30.9%; 42.4% for locally produced goods; and 36.2% for imported goods.

The national inflation rate, the Service indicated, was influenced by personal care, social protection and miscellaneous goods and services; furnishing, household equipment and routine household equipment; food and non-alcoholic beverages; alcoholic beverages, tobacco and narcotics; and housing, electricity, water, gas and other fuels.

These items recorded inflation rates higher than the national average.

Meanwhile, health; clothing and foot wears; recreation, sports and culture; transport; information and communication; education services; Insurance and Financial services; and Restaurant and accommodation services recorded inflation rates lower than the national average.

Regional Breakdown
In August 2023, the North East Region recorded the highest level of inflation at 60.1% down from 64.0% in July 2023.

It was followed by the Eastern region (49.9%), Western (49.7%), Bono (47.1%), Northern (46.8%), Western (46.3), Upper East (45.1%), Savannah (44.7%) and Volta (42.6%).

The Greater Accra Region had the lowest inflation rate at 31.8% followed by Ashanti (32.6%), Ahafo (33.2%), Oti (36.3%), Upper West (37.7%) and Bono East (39.2%).

The reduction in the inflation rate follows a rise within four consecutive months starting from April (42.2%), May (41.2%), June (42.5%) and July (43.1%) this year.

The Central Bank and the Ministry of Finance during those months attributed the rising inflation rates to a variety of factors, including higher food prices, implementation of new tax measures, and utility tariff adjustments.

The Bank of Ghana (BoG) anticipates inflation will go further higher as a result of the second round effects of food prices.

To forestall this, the Minister for Finance, Ken Ofori Atta, while reading the 2023 Mid-year budget said the government plans to spearhead what it calls the Economic Enclaves Project (EEP) in selected areas in the country.

He said the government would provide agriculture infrastructure and land development support to entrepreneurial youth and the formal private sector in pursuit of this project.