Inflation Surges to 23.5%

Ghana’s inflation rate has witnessed a marginal rise for the month of January 2024, according to data from the Ghana Statistical Service (GSS).

This is a 2.0% surge in consumer price inflation, the first surge in six months casting doubt on the Bank of Ghana’s recently announced anticipated disinflation process in headline inflation.

“The year-on-year inflation rate as measured by the CPI was 23.5 per cent in January 2024 (Figure 1). This rate of inflation for January 2024 is the percentage change in the Consumer Price Index (CPI) over the twelve months, from January 2023 to January 2024,” the GSS said in a released statement.

The Eastern Region maintained its position with the highest inflation rate, now standing at 37.1%, up from 35.9% in December 2023, while the Greater Accra Region continued to hold the title for the lowest inflation rate, now at 14.4%, down from 16.0% in December 2023.

In all, nine regions recorded inflation rates higher than the national average.

January’s inflation rate was facilitated by alcoholic beverages, tobacco and narcotics; personal care, social protection; food and non-alcoholic beverages; furnishing, household equipment and routine household maintenance; and restaurants and accommodation services.

Meanwhile, the Food and Non-alcoholic beverages inflation rate recorded a year-on-year inflation rate of 27.1 per cent in January 2024.

The Non-Food group recorded a year-on-year inflation rate of 20.5 per cent in January 2024.

The Bank of Ghana (BoG) after their recent Monetary Policy Committee meeting earlier this year forecasted that the disinflation process will continue with an expected ease in headline inflation.

The forecast resulted in the reduction of the Monetary Policy Rate (MPR) to 29% from 30%.